According to traders, price of edible oil has gone up in the market because of rise in prices of raw materials in international market. As the local market is dependent on international market for raw materials, any change in prices in the international market is reflected in the domestic market. [break]
“Price of edible oil has increased because of low production owing to short supply of raw materials as fresh harvest of oil crop is yet to enter the market,” said Ganga Ram Maharjan, sales executive of Brown rice and Health foods at Indra Chowk.
He said price will continue to rise as oil crop production is declining with every passing year.
On Monday, Dhara mustard oil was sold at Rs 180 per liter, up from 160 per liter recorded two weeks ago.
Similarly, price of sunflower oil has increased by Rs 10 per liter to Rs 170 per liter. Soybean oil too is selling at Rs 140 per liter, up from Rs 130 per liter recorded a fortnight ago.
“Because of low domestic production, we have to depend on other countries for raw materials. This is making edible oil dearer in the market,” said Siddhi Gorkhali, an official of Nepal Retailers Association. “Oil mills are facing shortage of mustard seeds because China - the major supplier - has reduced exports of mustard seeds.”
Though edible oil has become dearer, traders said prices of major commodities like rice, beaten rice, lentils and sugar have remained unchanged during the period.
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