Prices of Cooking Oil and Rice Soar Ahead of Elections

Prices of essential food items, including cooking oil and rice, have risen sharply in the domestic market as the country heads toward elections, with traders citing international factors for the increase.

Retailers say rice prices have gone up by as much as Rs 150 per sack, while cooking oil prices have increased by up to Rs 300 per carton. A retailer at the Kalimati food market said wholesalers had raised prices, forcing retailers to pass the increase on to consumers.

Currently, a 25-kg sack of steam Jeera Masino rice is selling for around Rs 2,500. Retailers said wholesalers have increased rice prices by at least Rs 100 per sack. In the cooking oil segment, sunflower oil is being sold at a retail price of Rs 290 per litre, while soybean oil is priced at around Rs 270 per litre.

Devendra Bhakta Shrestha, president of the Food, Grocery and Wholesale Traders’ Association, said rice prices in Nepal have been affected by a rise in paddy prices in India. However, he noted that old stock is still being sold in the market and that wholesalers have not yet raised prices accordingly.

“Some retailers may have increased prices based on rumours of price hikes in India,” Shrestha said. “Selling rice at higher prices before the costlier stock enters the market is not a healthy practice.”

Vibhor Agrawal, a member of the Nepal Rice, Oil, Dal and Pulses Industries Association, said importing paddy from India has become costlier by up to INR 200 per quintal. He attributed the increase to a decline in paddy production in India this year.

Meanwhile, the Department of Commerce, Supply and Consumer Protection said there is no clear justification so far for the recent increase in cooking oil prices. According to the department’s director, Narahari Tiwari, traders have cited a rise in the US dollar exchange rate as the main reason.

“They claim that since the raw materials of cooking oil are imported in dollars, the higher exchange rate has pushed up costs, leading to an increase of up to Rs 300 per carton,” Tiwari said. “However, the department is closely examining whether this claim is valid.”

Industry insiders also said prices of cooking oil in the domestic market of Nepal have risen as producers have shifted focus toward exports to India, where demand increases during the festival of Holi. India has increased oil imports, and Nepali producers prefer the Indian market due to faster cash payments, leading to supply constraints at home.