Packaged processed food items like biscuits and breads have become costlier.

Manufacturers have hiked the prices of the commodities, saying the production costs have gone up due to India’s unofficial trade blockade and Tarai unrest.

 Some manufacturers have already hiked the prices, while some are planning to raise the prices soon, if the blockade continues.  Some companies have reduced the net weight of their products.

Most of the industries have been operating below 20-50 percent of the total capacity due to decreasing supplies of raw materials from international markets, and price rise in the domestic markets have prompted them to increase prices.

Wai-Wai noodles, which had disappeared from the shelves few weeks ago, are now available with reduced net weight. Earlier the net weight of Wai-Wai noodle was 65-75gm.

Similarly, Nanglo Bakeries has hiked the price of white and brown bread by 14 to 16 percent. Brown and white bread now cost Rs80 per packet, Rs10 more than earlier.

Nebico Biscuits has also hiked the prices of Trekkers Choice, Coconut and Digestive biscuits by 15-25 percent. The company said that the factory located in Balaju has been operating at 20 percent of its capacity.

“There has been rise in the prices of raw materials by 30-40 percent after the supply problem, so we have increased the prices of some varieties for cross subsidization,” said Homnath Neupane, chief executive officer of Nebico. It produces 40 varieties of biscuits. Trekkers Choice biscuit has new retail price of Rs25-five rupees more from earlier price. Similarly, price of Coconut biscuits has been increased by Rs5 to Rs 20.

According to industry sources, the country imports ingredients like cocoa powder, anti-oxidant, emulsifier and dough raising agents, among others from countries like India, China and the US. Other ingredients like flour, sugar and ghee are being sourced domestically.  Price of sugar has gone up to Rs80 per kg, from Rs65 per kg two months ago, while flour prices have increased to Rs48 per kg from Rs44 earlier. Price of Dalda ghee surged to Rs160 per kg from Rs125 per kg. “Increased transportation cost as the transporters have to buy diesel in the black market, is also the cause of price hike,” added Neupane.  Mahesh Jaju, managing director of Goodlife Biscuits, said they would be compelled to hike the prices of their products if the current situation continues for some more days. “We are forced to halve the production due to shortage of raw materials as domestically sourced ingredients have become dearer and transportation charges have gone up, almost every week,” he said.

The company from its plant Biratnagar produces 750 tonnes of biscuits of 30 varieties per month during normal times.