KATHMANDU, March 11: Price of wheat flour that almost doubled in the past six months has started moving downhill after India eased restrictions on wheat exports to Nepal.
According to the Nepal Retailers Association, the cost of wheat flour has reduced by around Rs 900 a sack recently. Dhruba Adhikari, an executive member of the association, said the price has come down from Rs 4,600 to Rs 3,700 per 50 kg sack.
50,000 metric tons of wheat required to address shortage
The price of the essential food started to leap in the local market after India put a ban on export of wheat flour on May 13, 2022, citing the Russia-Ukraine war and the decline in production. As a result, the price of common flour jumped to as high as Rs 95 per kg from around Rs 50 per kg over the period. Similarly, the price of fine flour also went up to more than Rs 100 per kg from Rs 60 per kg.
Following the request from the Government of Nepal, the southern neighbor partially lifted the restriction on the export of the wheat grain. The Indian government has permitted Nepal to import 50,000 tons of wheat from India.
Utilizing the leeway of the Indian government, Nepali traders have started importing the food grain. In addition, the Food Management and Trading Company and the Salt Trading Corporation Limited have also started wheat import processes from India. These government entities are importing 7,500 metric tons of wheat from the southern neighbor.
Adhikari said the increased supply of raw material has helped reduce the price of wheat flour in the domestic market. According to him, the price of fine flour has now come down to Rs 74 per kg from over Rs 100 per kg.
