Rice Prices Stay High Despite Industry Pledge as Fair Price Outlets Open
Despite a government-brokered agreement to slash rice prices by up to Rs 200 per sack, retail rates remain elevated as state-run fair price shops open across Nepal for the festive season.
Private rice millers across Nepal have failed to lower market prices despite committing two weeks ago to reduce costs by up to Rs 200 per sack, even as state-run enterprises roll out subsidized festive shops in several districts ahead of Dashain, Tihar, and Chhath.
According to Gorkhapatra, millers agreed during talks with Minister for Industry, Commerce and Supplies Deepak Kumar Sah in mid-September to cut prices by up to Rs 200 per 25-kilogram bag. That meeting followed a sharp price surge between mid-June and mid-September, when a standard 25-kilogram sack of Jeera Masino rice climbed by Rs 400 to Rs 500, reaching retail rates between Rs 2,500 and Rs 2,700. Traders had blamed higher paddy costs in India, export restrictions, and rising transport expenses for the spike.
Despite the agreement, market inspections by the Department of Commerce, Supplies and Consumer Protection found that consumer prices remain unchanged. Anil Kiranti, a director at the department, told Gorkhapatra that wholesalers cited existing inventories purchased at earlier peak prices as the primary reason for the delay. Pabitra Bajracharya, president of the Nepal Retailers Association, criticized regulatory agencies for failing to act against millers, noting that inspections remained confined to small retail shops rather than targeting producers.
Devendra Bhakta Shrestha, president of the Nepal Food Grocery and Wholesale Trade Association, stated that transport disruptions along major routes, including the Prithvi Highway, had inflated freight expenses. Shrestha projected that sack prices could decline by Rs 75 to Rs 125 once road access stabilizes, with a further 10 to 15 percent drop expected when the upcoming domestic paddy harvest enters the market in about a month.
To cushion consumers from market inflation during the festive season, government trading agencies have expanded discount sales. In Jhapa, the Food Management and Trading Company (FMTC) and Salt Trading Corporation began selling essentials at concessionary rates, Nagarik News reported. Jhapa Chief District Officer Shrawan Kumar Pokharel coordinated the initiative, which offers a discount of Rs 5 per kilogram on Jeera Masino and Sona Mansuli rice and Rs 2 per kilogram on salt. Salt Trading Corporation has also launched comparable discount counters across Biratnagar, Rajbiraj, Janakpur, Birgunj, Pokhara, and several other hubs.
Similar interventions are underway in hill regions. Makalu Khabar and Himal Press reported that the FMTC branch in Gorkha has distributed subsidized rice across the district, including designated quotas for remote depots in Sirdibas, Namrung, and Chhumling. Branch chief Ranjana KC noted that discounts of Rs 5 per kilogram apply to steam Jeera Masino and Aruwa Sona Mansuli rice, alongside planned festive sales of sugar, cooking oil, and pulses.