Rising food prices cause business slowdown

Published On: April 16, 2024 03:55 PM NPT By: Republica  | @RepublicaNepal

KATHMANDU, April 16: The prices of daily food items in the market have started to soar, causing concern among consumers.

According to the traders, there is an increase in the prices of pulses, rice, sugar, salt, oil, and other essential food items.

According to the Nepal Retailers Association, food prices have surged by 5 to 10 percent over the past month and a half. Similarly, the price of ghee and oil products has risen by more than 10 percent.

According to Pabitra Bajracharya, president of the association, the price of cooking oil, priced at Rs 200 per liter a month ago, has now climbed to Rs 210 to Rs 220 per liter. He said that when the wholesaler increases the price and sends it to the consumers through the retailers, the price hikes.

“The essential food item prices have risen by 5 to 7 percent, while other items have seen increases of over 10 percent,” he said. He added that when some products and goods are sold out in the market, the prices will increase as soon as the goods are brought back from wholesalers.

Despite economic recession, traders observe a decrease in demand and consumption of food items due to the heightened prices.  He said that the current business activity has declined by 30 percent.

“The expectation was that increased prices would lead to higher sales, but instead, business has decreased by 30 percent,” Bajracharya said.


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