Rice, lentil prices zoom up again

KATHMANDU: Prices for agricultural produce as far as rice and lentils are concerned have gone up a considerable amount.

According to ration store owners, the price hike has been due to lower food production because of deficit monsoon and prolonged drought in several parts of the national as well a reduction in Indian production.

“Rahar dal which was at Rs 110-120 kg has gone up to Rs 140. Prices are going up and there is nothing we also can do. We sell at wholesale rates, retailers get a much higher margin,” said Sanjay Agrawal, Balaji Kirana Store.

Moong dal price has risen from Rs 120 to Rs 150 per kilo.

Basmati rice imported from India has gone up to Rs 200 from Rs 190 per kg while locally available Mansuli has gone up to Rs 1175 for a 30-kilo sack from its previous price of Rs 1150.

“Other dry agricultural products haven’t seen much of a change in price. Maybe by a few rupees, but that is quite negligible,” he added. Retailer Ajay Sharma added that since buying products from wholesalers is already so expensive, retailers have to add certain margin and sell. Otherwise, there will be no profit at all.

Reports from India claim that food prices will decline after the Rabi (winter) crop as production of wheat, rice, pulses, oil seeds and sugarcane will increase.

Earlier in July, the price of lentils jumped in the same ratio and the government had to import 5,000 Rahar from India. The Indian government had sought to know the required quantity of food items — rice, lentils and wheat— last month but Nepal government has not provided the list to India yet.

Shortage of lentils in the market is the cause of the price hike, said a senior government officer of Ministry of Commerce and Supply (MoCS). “Actually, we don’t have sufficient data on the quantity of food required,” he said. Ministry of Agriculture and Cooperatives (MoAC) has forcast rice production will fall by 3,00,000 MT in 2009-10 due as a result of bad weather. Meanwhile, the ministry is planning to ask for around 1,00,000 MT rice from the Indian government soon.MoCS is still uncertain about the national deficit of lentils.

Compelled by its own food shortage, India imposed an export ban on rice, lentils, edible oil this May. Prime Minister Madhav Kumar Nepal’s last visit to India was part of an effort to get the export ban lifted for Nepal.