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VOL. 27, NO. 32, April 25, 2008 (Baishakh 13 2065 B.S.)
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Price Spike
The global price rise of food stuffs has affected Nepalese market compelling authorities to take stark measures
By SANJAYA DHAKAL
In the past two months, the prices of essential food products have jumped, on average, by 20 percent.
Price of rice, wheat, flour, edible oil, pulses and cereals have all increased.
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Marketplace: Price getting hotter |
"If we compare the current price of food stuffs with that of two/three months before, we can find that they have increased, on average, between 15 to 20 percent," said Pabitra Bajracharya, president of Nepal Retail Traders Association.
"Across the board the price rise has affected all kinds of foodstuffs including cereals, rice, pulses, oil etc," said Bajracharya.
Till two months ago, the price of rice (Mansuli rice) was Rs 850 per 30 kg packet. This has increased to Rs 1000 now. The price of wheat flour has increased from Rs 24 to Rs 28 per kg. The price of edible oil has shot up from Rs 90 per liter to Rs 130 per liter. Pulses and cereals too have jumped significantly.
"The price with which you could buy two sacks of food stuffs now get you only one sack. Everything has become expensive rice, pulses, cereals, oil," said Jujubhai Shrestha, a retail trader at Ason market.
The price of food is increasing all over the world. Along with the increase in the price of petroleum products, the price of delivery, too, increased. Likewise, the use of food stuffs like maize in producing bio-fuel has made it scarce. Moreover, the world is facing worst food scarcity in the last three decades. All of these factors have contributed to rising prices of food in the world.
Consequently, riots and demonstrations have broken out in dozens of countries in Asia and Africa including Egypt, Senegal, Haiti, Bangladesh and so on.
India has, like many other countries, banned the export of wheat and rice (except Basmati rice).
The government of Nepal, too, is preparing to restrict the export of essential foodstuffs.
"Our production is enough. And we don't have production or supply side problem. But exports of them could lead to a problem. Therefore, we are discussing about restricting their exports," said Gyan Darshan Udas, spokesperson at the Ministry of Industry, Commerce and Supplies.
The government and private sector agreed to restrict export of rice, paddy, wheat and maize, among other food stuffs. "It was agreed to ban the export of food stuffs because there could be crisis situation otherwise," said Kush Kumar Joshi, president of Federation of Nepalese Chamber of Commerce and Industry (FNCCI). Some of the food stuffs such as rice and wheat and products like flour are exported to India and Bangladesh.
As the Maoists prepare to take charge of the new government, they are likely to face the problem of food shortage and price rise.
"If there is international price rise, then we would have to look into the option of adjusting domestic prices through consultations with all stakeholders and political parties," said Krishna Bahadur Mahara, a senior Maoist leader and Minister for Information and Communication.
The United Nations Secretary General Ban ki Moon has expressed concerns that food shortage could hit the target of reducing hunger and poverty in the Millennium Development Goals (MDGs).
He has warned that the rise in prices of essential food could not only affect economic growth and social progress but also hit the political security situation, particularly in developing and poor countries.
