Kathmandu: As Nepal heads toward elections, consumers are facing a sharp rise in the cost of daily necessities, with business owners and authorities offering conflicting explanations. Some manufacturers and traders blame the rising US dollar, while others openly acknowledge that election-related pressures are driving prices up across the market.
Over the past week, prices have increased on everything from eggs, an item the government claims the country produces in sufficient quantities, to cooking oil, which relies heavily on imported raw materials. Staples such as rice, lentils, beans, and turmeric powder have also become more expensive. Industry insiders say cooking oil prices have jumped in part because roughly 75 percent of domestically processed edible oil is exported to India, leaving limited supply for the local market and pushing up domestic prices.
One industrialist argued that elections inevitably distort markets worldwide and said the current price rise has less to do with the dollar and more to do with political financing. According to him, business owners are under constant pressure from political parties for donations to cover campaign costs, and those expenses ultimately get passed on to consumers through higher product prices.
Regulatory bodies, including the Ministry of Industry, Commerce and Supplies and the Department of Commerce, Supplies and Consumer Protection, have largely attributed the situation to the stronger US dollar, a position critics say allows them to sidestep responsibility.
However, retail trade representatives dispute that claim, noting that imported raw materials typically take three to four months to work through the production cycle, meaning currency fluctuations would not immediately affect retail prices. They also point out that many other fully imported goods have not seen similar price hikes.
Retailers report unusual increases in the prices of soybean, sunflower, and mustard oil. For example, roasted mustard oil that sold for Rs 430 per litre a month ago is now around 440, while soybean and sunflower oil have seen even steeper jumps. Traders allege that some producers have relabelled old stock with new, higher prices. They argue weak monitoring of large manufacturers and wholesale hubs has allowed arbitrary pricing, while small retailers face frequent inspections and fines.
Consumer rights advocates accuse the government of negligence, saying regulators focus on small shops while failing to scrutinize major producers and wholesalers.
Data show Nepal imports large volumes of crude soybean, palm, and sunflower oil, much of which is refined and then re-exported to India. Because exports offer higher margins and cash sales, producers prioritize foreign markets, supplying only about a quarter to a third of domestic demand, which contributes to shortages and rising prices at home. Some industry voices have proposed mandatory quotas requiring at least half of total production to be sold domestically before exports.
Rice prices are also climbing. Industry representatives say Nepal depends on Indian paddy imports and that price increases in India, partly linked to export commitments to other countries, are feeding into the Nepali market. Depending on the variety, rice has risen by 100 to 150 rupees per 25-kilogram sack.
Consumer rights advocates accuse the government of negligence, saying regulators focus on small shops while failing to scrutinize major producers and wholesalers. They argue that without strict oversight at the source, the real drivers of inflation remain hidden. They also echo claims that election fundraising demands from political actors are adding to cost pressures.
Egg prices have climbed as well. The Nepal Layers Poultry Farmers Association has raised farm-gate prices for both large and medium eggs, citing higher demand during the election period. Critics, however, accuse the association of cartel-like behaviour, noting that the government has repeatedly said the country is self-sufficient in egg production. Even so, crate prices have increased significantly, adding to the broader pre-election squeeze on household budgets.
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