Rising costs make Dashain harder to celebrate happily

Kathmandu, Oct. 18: Soaring prices of essential commodities, clothing and other consumer goods have made it increasingly difficult for people to manage their household budgets during Dashain and Tihar.

Rising fuel prices, higher transportation and production costs, expensive imports and growing festive demand have contributed to price increases across the market.

Besides, the prices of commodities have further increased in the market with the increasing demand of daily consumer goods, including rice, oil, lentils, vegetables, meat and fruits to clothes and leaving consumers hard pressed to manage budget for Dashain.

Supply chains disrupted by the Bhotekoshi flood on August 26 and subsequent rainfall in September have yet to return to normal, although supplies have gradually improved. 

Consumers, however, continue to face higher prices, with some traders and middlemen reportedly taking advantage of supply constraints to increase prices.

Consumers said prices had been rising over the past year, making it increasingly difficult to afford festival expenses. Dashain is an occasion when many middle- and low-income families spend beyond their regular budgets, sometimes borrowing money to celebrate.

Essential goods become more expensive

Sandhya Pudasaini of Bhaisepati said the prices of essential commodities, including rice and edible oil, had increased significantly compared with last year. “I recently bought a 25-kg sack of the rice we regularly consume for Rs. 2,700, whereas it cost less than Rs. 2,500 almost a month ago,” she told The Rising Nepal.

She said prices of lentils and other household necessities had also risen considerably, adding to the financial burden during Dashain.

Amul Kazi Tuladhar, general secretary of the Nepal Retailers Association, said the prices of consumer goods, including rice and edible oil, had increased by 10 to 15 per cent over the past one to two months.

According to him, rice prices had risen by Rs. 15 to Rs. 20 per kg, depending on the variety, while edible oil had become around Rs. 30 per litre more expensive. Depending on the variety, edible oil now costs Rs. 250 to Rs. 340 per litre.

“Retailers sell goods at the maximum retail price (MRP), so we have little control over reducing or increasing prices. When we purchase goods from wholesalers, the MRP has already increased. Wholesalers tell us that the increases are due to import prices and transportation costs,” he said.

Tuladhar added that prices tended to rise during festivals as importers and wholesalers sought to benefit from increased demand.

Citing sugar as an example, he said its price had reached Rs. 160 per kg before the Salt Trading Corporation began supplying it to retailers at Rs. 105 per kg. Retailers then sold the sugar at Rs. 110 per kg, prompting suppliers to lower their prices. The example, he said, demonstrated that improved supplies could help bring prices down.

To provide relief to consumers, the Food Management and Trading Company Limited and the Salt Trading Corporation are selling essential commodities at discounted rates through their outlets across the country. They are offering discounts of Rs. 5 per kg or litre on products including rice, lentils, cooking oil, beans and sugar.

Vegetable prices have also increased in the Kathmandu Valley, adding to the expenses of households preparing for the festivals.

Garment prices surge by up to 20 per cent

Clothing has also become more expensive this year, adding to the financial pressure on festival shoppers.

Manoj Babu Shrestha, president of the Nepal National Traders’ Federation, said garment prices had increased by 15 to 20 per cent compared with last year, mainly due to the rise in the US dollar exchange rate and transportation costs.