Middlemen Responsible for Price Volatility in Food Market: Govt Report

Prices of food and daily essentials continued to fluctuate in the domestic market largely due to the role of middlemen, despite relatively stable production costs, according to a government study.

The price volatility—particularly in vegetables, fruits and staple food items—has been attributed to inefficiencies in the supply chain and excessive intermediary involvement, the study noted, calling for stronger institutional alternatives to stabilize prices.

Unveiling the Price Analysis Report for mid-December to mid-January on Thursday, the Department of Commerce, Supplies and Consumer Protection said the overall market prices showed normal to moderate fluctuations during the review period. The department added that the report was prepared using data collected through five regional offices.

The report stressed the need to strengthen government institutions and develop alternative trading mechanisms—such as cooperatives, institutional trading, commercial networks and partnerships—to discourage unhealthy market practices by middlemen. It also recommended boosting domestic production, reducing distribution layers, improving supply management, and curbing artificial price hikes.

To ensure price control, the department urged an end to syndicates and cartels and called for the promotion of fair competition through regular market monitoring.

The study was conducted through the department’s offices in Biratnagar, Birgunj, Bhairahawa, Nepalgunj, Dhangadhi and Kathmandu, with the objective of tracking minimum and maximum prices of food items and other consumer goods.

According to the report, prices of rice varieties such as Sona Mansuli, Steam Jeera, General Jeera and coarse rice showed minor fluctuations across cities. Compared to the previous month, the price of Sona Mansuli rice declined, while Basmati rice became more expensive. Other rice varieties recorded only marginal changes.

Prices of pulses increased slightly, while lentils and legumes saw minor variations. Kidney beans, however, experienced moderate price swings. The average prices of vegetables and spices fluctuated moderately. While potato, cauliflower and onion prices remained largely stable, sharp fluctuations were recorded in ginger, tomato, garlic and dry chilli.

Fruit prices—particularly apple and pomegranate—showed abnormal fluctuations, with similar price movements observed across major cities. Prices of fish, meat and eggs remained mostly stable, though goat meat, broiler chicken, eggs and fish showed mild to moderate variations depending on location.

Overall, while prices of most fruits and vegetables remained relatively stable, the study found price changes ranging from 109 percent to as high as 160 percent in certain vegetables, including local and hybrid green beans, pointed gourd, hybrid cucumber, and local asparagus. -- RSS