Consumer Goods Prices Rise in Nepal Amid Approaching General Elections

As the general elections draw nearer, the prices of daily essential commodities in the Nepali market have started to increase. In recent weeks, price hikes have been observed in cooking oil, rice, and lentils, while irregularities in the supply of LPG gas have also surfaced.

The price of cooking oil in the market has increased by NPR 25 to NPR 30 per liter. Traders themselves admit that the prices of rice and lentils have also gone up, which is expected to affect household budgets.

According to Amul Kaji Tuladhar, General Secretary of the Nepal Retail Trade Association, the Maximum Retail Price (MRP) for lentils, rice, and oil has increased in the last few days. He stated that retail traders are compelled to sell at the increased prices because the manufacturers or importers have sent the goods with higher MRPs.

He said, 'There has been a price increase in oil and rice. Goods that were sold for NPR 245 a month and a half ago are now being sold for up to NPR 300. Most items arrive with an MRP printed on them. Determining the MRP is the responsibility of the producer or importer. A retail shopkeeper cannot sell an item with an MRP of NPR 240 for NPR 290, and this is not happening.'

According to Tuladhar, when asked about the reason for the price hike, producers and importers cited the rising dollar exchange rate and increased cost of raw materials. He mentioned that market prices also rise due to some supply irregularities. He suggested that the Department of Commerce should take an interest in why and how these price increases are occurring.

Meanwhile, the state-owned Salt Trading Corporation Limited stated that it has not increased the prices of the goods it sells so far. Deputy Chief Executive Officer Brajesh Kumar Jha confirmed that the prices of salt, lentils, and rice currently in stock at Salt have not been raised.

According to him, Salt currently has 127,463 metric tons of salt in stock, which can last for more than six months. The Kathmandu office has 6,443 quintals of sugar in stock, and other offices also have stock available. He stated that these goods are being sold at the old prices.

He added that if the prices of goods purchased by Salt from the market increase, there might be a need to adjust prices in the future. He indicated a possibility of price increases for oil and rice currently in the procurement process.

Regarding LPG gas, he claimed that the supply through Salt is currently smooth. According to him, about 1800 cylinders are in stock at the Koteshwor depot and are being distributed. Five gas bullets (approximately 90 tons) are en route to Nepal, while other bullets are heading to India.

On the other hand, following increased complaints about price hikes and gas shortages in the market, the Department of Commerce, Supply and Consumer Protection stated that it has intensified monitoring. According to Director Narhari Tiwari of the Department, intensive monitoring has been carried out following complaints regarding oil, rice, and gas.

He said, 'We received many complaints about the price hike in cooking oil. Following that, intensive monitoring was conducted. We have also monitored rice. Availability in the market is sufficient. Following complaints about gas shortages, we have deployed four teams daily for monitoring.'

According to Tiwari, gas demand increases by about 15 percent during the winter season, causing some pressure on supply. He stated that action against black marketing and activities affecting the supply chain has been intensified. The Department reported that monitoring has been conducted at about 90 industries and firms in recent days.

The Department stated that it continues its efforts to ensure smooth supply to consumers while keeping the market situation under surveillance.