Nepal’s broken supply chain: Farmers earn less, consumers pay more
Agricultural goods in Nepal pass through up to seven layers of middlemen and this drives consumer prices up to seven times higher than the farmgate price, government report says.
Agricultural goods in Nepal pass through up to seven layers of middlemen and this drives consumer prices up to seven times higher than the farmgate price, government report says.
Arrivals have fallen by nearly two-thirds since Thursday as highways to major vegetable-producing districts are damaged in places, leading to a steep price rises.
Experts call for changes to non-tariff barriers, reciprocal duty-free provisions, trade facilitation and investment as Nepal’s exports remain heavily dependent on a few products.
India has also asked Nepal to facilitate market access for its agricultural and dairy products, which face restrictions in Nepal.
Disruptions at two northern crossings have pushed more cargo through Korala, where high transport costs and limited infrastructure are delaying shipments ahead of Dashain.
Consumers in Kathmandu Valley are cutting back on food and festive preparations as supply disruptions and rising transport costs push up the prices of daily essentials.
High logistics costs, limited cross-border payment options, regulatory hurdles and weak digital readiness keep Nepali products off global online marketplaces.
Consumers spend hours searching for cylinders as the closure of the Mugling-Naubise road disrupts supplies. Restaurants warn they may be forced to shut if the shortage persists.
Nepal Oil Corporation says it has prioritised household supply but denies banning sales to hotels and restaurants. Businesses warn they may be forced to shut if shortages persist.
Customs officials seek additional manpower and equipment as traders divert stranded containers to the border point in upper Mustang.
Retail prices have climbed to Rs110-140 per kilo. Nepal gets almost all its onions from India.
With the main gateway to China destroyed and alternatives vulnerable to floods, landslides and harsh weather, traders face another uncertain festival season.
The key route to the capital remains blocked since Wednesday’s Bhotekoshi floods. Falling vegetable arrivals and damaged roads are raising concerns over food and fuel supplies.
Nepal’s sugar stocks, once described as sufficient to meet demand for six months, are now under pressure as prices rise and the festive season approaches.
Court says government must ensure farmers are paid on time and warns that agreements should not become a tool to silence those without access to authorities.