Good winter harvest eases food price

KATHMANDU,JAN 26: 

The food price is expected to mellow down in the coming months due to favourable outlook of winter harvest provided increased fuel prices do not impact price situation and transport cost.

“Food price like coarse rice is likely to decline due to recent harvest, while prices of lean season commodities such as wheat flour and edible oils are likely to increase in the next month,” according to a joint report published by UN World Food Program (WFP), Ministry of Agriculture and Co-operatives (MoAC), Federation of Nepalese Chambers of Commerce and Industries (FNCCI) and Consumer Interest Protection Forum (CIPF).

The report show that the prices of most commodities — particularly newly harvested summer crops — declined in December compared to November 2011. 

“The national average price of coarse rice dropped by 5.7 per cent to Rs 33.3 per kg, while that of wheat flour increased by a nominal 1.7 per cent to Rs 35.2 per kg compared to November,” according to the report prepared on the basis of price situation in selected major markets of Nepal.

Furthermore, in comparison to September, most prices of staple foods and pulses are in declining trend with an exception of the price of edible oils. Even the central bank’s official inflation data shows moderated price rise in the fifth month of the current fiscal year approaching the target level of seven per cent. 

The tamed down price rise rate has also brought down food price inflation to 7.1 per cent that had increased by 15.2 per cent in the corresponding period last fiscal year. 

The price index of vegetables, which had increased by 33.7 per cent in the corresponding period of previous year, went up by only 18.8 per cent during the review period. Under the items of the food and beverage group, price index of fruits sub-groups rose by the highest rate of 20 per cent during the period compared to an increase of 22.9 per cent in the same period of the previous year. 

The wholesale index of agricultural commodities went down by 1.5 per cent in fifth month of current fiscal year. Within the group of agricultural commodities, the wholesale price index of fruits and vegetables increased by 2.3 per cent during the review period which had increased by 31.1 per cent in the same period of the last fiscal year.

However, recent crisis in the delivery of petroleum products is likely to affect smooth operation of transportation services obstructing on food supply.

Source: THT