Daily Goods Prices Keep Rising (Video)

Sabika Shrestha/Pawan Barsha

Prices of daily consumer goods have soared across Nepal.

As the country’s major festivals, Dashain and Tihar, draw closer, the prices of sugar, rice, pulses, onions and other essentials have risen sharply.

Yet, neither the government, traders nor consumers appear to have a clear explanation for what is driving the price hikes.

Sugar, which was available at around Rs.95 about 65 US cents per kilogram until recently, now costs between Rs.120 and Rs.150, or roughly 83 cents to just over one dollar.

The government and sugar producers say there is sufficient sugar in the market to meet demand.

However, the situation appears quite different.

Prices have increased at almost every retail outlet; with some shops selling sugar at different rates and others telling consumers it is unavailable.

The government-run Food Management and Trading Company is currently selling sugar at Rs.110 around 76 US cents per kilogram.

Sugar producers and traders had given a written commitment to the government in June that they would not increase prices until Dashain.

They have now breached that commitment, with retail prices rising by 25 to 30 percent.

Consumers have complained that traders are taking advantage of increased festival demand to raise prices.

The price increase is not limited to sugar.

With Dashain approaching, the price of a sack of rice has increased by Rs.500 to 800 roughly upto 5.50 US dollars.

Even retailers say they do not know why.

They say wholesale prices have already gone up, leaving them with little information about the reason behind the increase.

The price of onions has also soared.

A daily staple in Nepali kitchens, onions are now selling for between Rs.120 and 140 per kilogram.

The government says there is sufficient sugar in stock with the private sector and Salt Trading Corporation.

It says preparations are underway to import 25,000 tonnes of sugar from India through the government and another 15,000 tonnes through the private sector before Dashain.

The government has ruled out the possibility of a sugar shortage and warned that action will be taken if unjustified price hikes are found.

According to sugar producers, industries currently have around 20,000 tonnes of sugar in stock, while another 15,000 tonnes are available in the market.

Nepal consumes around 280,000 tonnes of sugar annually.