The year that was in, uh-oh ... food prices

High food prices remain a significant concern for Nepal. The most recent year-on-year food price inflation figure provided by Nepal Rastra Bank in November was over 16 per cent. The price of rice continued to be at the same or higher level even after the recent crop harvest. Prices in most Tarai markets are higher by 10 to 40 per cent compared to the same time last year.
Poor summer harvests domestically and across much of India are a significant factor keeping prices in Nepal high. However, losses in India are not as bad as initially expected and it is likely that it produced a surplus summer crop. In early January, a joint MoAC and WFP mission will confirm loss estimates in Nepal.

According to a report of World Food Programme in collaboration with Agri-business Promotion and Marketing Development Directorate, Federa tion of Nepalese Chambers of Com merce and Industries (FNCCI) and Consumer's Interest Protection Fo rum, the price of food grain generally remained stable across Nepal this month due to increased supply from the summer harvest. In spite of the re cent harvest, price of rice continued to be at the same or even higher level.
i Price of coarse rice in most Tarai mar kets was higher by 10 to 40 per cent . compared to the same time last year.

National food price inflation re mains a significant concern. Coml pared to 12 months ago, the price of black gram is up by 37 per cent, wheat flour 19 per cent, musuro (broken lentil) 17 per cent and coarse rice 11 per cent. Cooking oils are the only commodity that did not see a signifi cant price rise in the past 12 months.

A seasonal increase in supply of fruit and vegetables significantly re duced prices across much of the country. For instance, Kalamati wholesale fruit and vegetable market experienced a decrease in the price of tomato, onion, carrot and cauliflower by around 25 per cent in the past one month.

Last December, the government lifted pulse export ban which had been in place since the end of July 2009.
Traders can export a maximum of 15,000 tonnes of pulses. Lentils were stable during the export ban.

The price of diesel and kerosene increased by three rupees per litre. Both now cost Rs 58 rupees per litre.

During the period, 90 percent of the markets surveyed across Nepal reported that the supply situation had remained stable or improved during December. This was a result of both improved road access following the reopening of monsoon damaged transportation routes (particularly in the mid and far-western hills and mountains).