PRICES OF IMPORTS CLIMB ALONG WITH US DOLLAR

MARKET prices of imported products have been on an upward trajectory with the Nepali rupee sinking to all-time lows. Traders said a stronger US dollar had resulted in soaring prices of consumer goods like garments, edibles and electronics. According to Nepal Rastra Bank, the domestic currency has depreciated by almost Rs 18 in the last two months against the greenback. The Nepali rupee dipped to a record low of Rs 108.90 per dollar on Aug 29 compared to Rs 91.40 per dollar on June 29. Sachin Shrestha, brand manager at apparel store UFO, said prices of Chinese outfits had jumped 40-50 percent in the last two months. “Readymade clothes which were available at Rs 1,000 apiece now cost Rs 1,500,” said Shrestha. “Besides the rise of the US dollar, a global increment in cotton prices and hike in worker wages in China has also pushed up prices of apparels imported from China,” he added. This is the time traders place import orders for goods meant for the upcoming festive season. They said goods, particularly apparels and footwear, had started to enter the country from the Chinese market. Most of the demand for apparels and footwear is fulfilled through imports from China. Traders said that the goods imported for the festive season would be highly expensive. Meanwhile, household expenses are also swelling due to daily goods becoming costlier. Pavitra Bajracharya, president of the Nepal Retailers’ Association, said that edible oils, gram, green pea and white pea imported from third countries had become more expensive. “Big traders have started curtailing supply in anticipation of the dollar rising further,” he said. Supply constraints will lead to higher prices of essentials. The government has intensified market monitoring due to rising instances of malpractices. Sellers of electronic items have also been preparing to increase their prices. Akhil Gupta, director of SG Global, an authorised distributor of Sharp electronics, said they would be increasing prices by 5-10 percent from next week. Sales of electronic items also jump during the festive season. Meanwhile, automobile traders said that prices of vehicles imported from countries other than India were likely to go 12-20 percent.