Egg Prices Surge Ahead of Elections; Consumer Watchdog Launches Market Monitoring

Kathmandu. Amid rising demand due to the approaching House of Representatives elections, the Nepal Layers Farmers Association has increased the price of eggs. Following the association's price hike, the Department of Commerce, Supply and Consumer Protection has deployed monitoring teams amid fears of potential black marketing.

The association, which had only reduced prices a week prior, increased them effective Sunday, citing high demand driven by the election atmosphere. According to the new price list, the farm gate price for large eggs has increased by NPR 30 per crate to NPR 495. Previously, large eggs were sold at NPR 465 per crate.

Similarly, the farm gate price for medium eggs has been set at NPR 475. Medium eggs were previously sold for NPR 445.

What is the main reason for the increase?

According to the association, the election atmosphere in the country and the onset of the winter season have increased egg consumption. Furthermore, they stated that demand rose due to the import of Indian eggs being halted due to tightened border security for the elections, and schools fully resuming operations after winter break. On the other hand, businessmen claim that prices were pressured because production decreased due to a fall in the number of chickens.

The association noted that the production cost per egg is NPR 19.12, making the cost per crate NPR 574. It is reported that the price increase has provided some relief to the farmers. Last Mangsir, egg prices reached an all-time high (large at NPR 565 and medium at NPR 550).

Complaints have been surfacing that egg traders are arbitrarily raising prices without any standard criteria. Consumer rights activist Bishnu Prasad Timilsina strongly objected to traders arbitrarily raising and lowering prices, commenting that the government watching silently as prices increase without reason is a 'state-sponsored crime'.

Reacting to the egg price increase within the last week, Timilsina alleged that traders created a syndicate by showing a reduction in production and then hiked prices. He further stated that the syndicate targeting the elections had begun in the market. He termed the unreasonable, baseless price hike in daily essential commodities just before the elections as fraud against consumers. He stated, 'The market needs to be analyzed, what caused the increase? Did labor costs rise? Did raw material prices increase? Increasing prices unfairly without looking into these matters is fraud against consumers.'

He accused the government, which claims to maintain good governance and stop price hikes, of ignoring the suffering of consumers close to the elections. 'It is not appropriate for the government to sit with its eyes closed like this,' he added. 'If they continue to ignore the suffering of consumers, it becomes a form of state-sponsored crime.'

Highlighting that the government's main responsibility is consumer protection, Timilsina demanded that the unfair price increases be immediately controlled.

Department Says: Monitoring Has Begun

The Department of Commerce, Supply and Consumer Protection has taken interest in the price and quality of eggs in the market. Department Director Narhari Tiwari informed that monitoring teams have been dispatched following complaints about increased egg prices in the market. Director General Tiwari stated, 'After receiving information about arbitrary market pricing following the increase in egg prices, we sent monitoring teams today itself. The department is striving to make the market clean and competitive.'

Following complaints about arbitrary price increases for eggs, the department had called traders in the month of Bhadra and directed them to mandatorily label eggs with MRP and production dates. Director Tiwari mentioned that some traders have started affixing labels on cartons and crates.

'While it might not be immediately possible on every single egg, most farms have started sending them with labels on the carton,' Tiwari said. 'We have summoned and fined some non-registered and non-compliant farms. We have warned them to place labels on the crate if possible, or at least on the carton.'

Tiwari stated that efforts are underway to implement the international best practice of labeling eggs in Nepal.