High food prices bite consumers

KATHMANDU, Jan 31: Despite record high production of paddy, the price of rice continued to soar in the market, making life difficult for consumers, particularly the low income groups.



Latest price data shows that the price of coarse rice -- a staple food item -- has shot up by a whooping 17 percent over a year. [break]



A similar price rise has been recorded for most food items in the market, according to The Market Watch, a joint report of the World Food Programme (WFP) Nepal, the Ministry of Agriculture and Co-operatives, the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) and the Consumers’ Rights Protection Forum.



Coarse rice, which is popular among lower income households, has gone up by 2 percent over the last one month, and is being sold at Rs 40 per kg in Kathmandu Valley.



Interestingly, the price rose by an even higher rate of 6.7 percent in Morang, one of the biggest paddy producing districts in eastern Nepal, during the period. Coarse rice is presently priced there at Rs 24 per kg. In Pokhara also, its price went up to Rs 37 per kg, a 5.7 percent increment compared to the price a month ago.



“The price of paddy will continue to go up until the next harvest of cereal crops,” states the report.



The recent report on cereal production released by the Ministry of Agriculture and Co-operatives (MoAC) showed that paddy production increased by 5 percent to 4.52 million tons this year, a new high in production.



The Market Watch also shows that the price of red lentils has soared by a staggering 35 percent over the year.



However, its price this month dropped 3 percent compared to last month.



The price of edible oil also skyrocketed over the year, by 30 percent, due to soaring prices in the international market and despite a slight fall since the previous month.



Chicken, on the other hand, has gone down during the month by 28 percent to Rs 140 per kg in Kathmandu Valley, due to reports of bird-flu in Jhapa -- a bordering district in eastern Nepal -- two weeks ago.



The price of red potato -- a popular vegetable item -- has plunged to Rs 18 per kg, which is about 18 percent down compared to the previous month. The report attributes the decline to the bumper harvest during this flush season.

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