Soaring Vegetable Prices

Soaring Vegetable Prices
eKantipur.com, 27-Sep-2007
BY PRABHAKAR GHIMIRE

Skyrocketing price of potato, due to supply deficit in Nepal prompted potato from Bhutan to find its way to the Nepali market this week, traders said. Shortage of potato due to nominal domestic production and short supply has led to mounting price of the ubiquitous vegetable in Nepal.

According to traders, around 50 tons of potato have been arriving in Kalimati wholesale market daily, down from the normal supply of around 70 tons. They said that supply of other major vegetable items has also nosedived by around 25 to 30 percent in recent days.

"Availability of Nepali potato in the market is almost nil, thus leaving the entire market dependent on potato from Bhutan and India of late," said Bharat Khatiwada, president of Association of Vegetable Wholesalers at Kalimati.

Khatiwada said red potatoes from Bhutan have hit the Kalimati market constituting more than half the total supply of potatoes. The potatoes from Bhutan are preferred by Nepali consumers due to its similarity in taste to Nepali potatoes.

Mist and disease in potato farms in different parts of the country, coupled by prolonged unrest in tarai region has disrupted supply and caused shortfall of production and supply of vegetables.

"Due to unrest in Tarai, Indian truckers have almost doubled transport charges, prompting market prices to go up sharply," said Shriram Upadhya another trader.

According to Upadhya traders are paying up to Rs 35,000 in recent days as compared to around Rs 15,000 to Rs 20,000 for ferrying vegetables. Data at Kalimati Fruits and Vegetables Market Development Board (KFVMD) shows an alarming rise of vegetable prices over a six month period.

Average price of red-potato, white potato and dry onion reached Rs 25, Rs 23 and Rs 36 per Kg respectively this week, which is almost double the price compared to last April when those items were priced at Rs 12, Rs 9 and Rs 20 per Kg respectively.

Likewise, prices of tomato, cauliflower and cabbage have reached Rs 29, Rs 44 and Rs 19 per Kg from, Rs 14 Rs 8, Rs 4 in April.

Over the period, price of onion in particular saw steady increase due to total dependence on India to cater to the ever increasing domestic demand of the most used vegetable item in Nepal, said Binaya Shrestha Planning officer at KFVMD.

Shrestha said that more than 95 percent of onion demand is being supplemented by Indian onion.

"However, production of onion in India has also dwindled sharply this year due to bad weather resulting in price hike in India, the sole supplier of onion to Nepal," said Shrestha.

Flood and inundation in Tarai region also aggravated the production and supply of other vegetables like cabbage, cauliflower, and tomato.

According to Shrestha, supply of vegetables in Kalimati wholesale market, the biggest vegetable market, stands at around 500 tons daily, down from around 650 tons to 700 tons in normal season.