Money
Government warns food producers, traders against unfair profits as prices surge
Commerce department steps up market inspections as prices of edible oil, pulses, meat and vegetables rise despite low inflation.Post Report
The government has ordered major producers, importers and distributors of food items and edible oil to provide relief to consumers by refraining from unfair profiteering and correcting what it called “unnatural” price hikes.
The Department of Commerce, Supplies and Consumer Protection issued the directive after calling in leading producers, importers and distributors, amid growing complaints from consumers and the media over rising prices of daily essentials such as edible oil, cooking gas and rice.
In a statement on Wednesday, the department said it has intensified market inspections in recent days to control price manipulation. It warned that firms found engaging in unlawful practices would face action under existing laws.
“We have received information that the prices of edible oils have increased, and we are carrying out a detailed price analysis,” said Narahari Tiwari, director of the department. “We have stepped up market inspections to manage and control unnatural price hikes. We have discussed the issue with relevant stakeholders and directed them to sell goods at realistic prices.”
According to the Price Analysis Report for the month between mid-December and mid-January, published last Wednesday, prices of some food items increased during the review period, while others remained stable or declined. The department said overall price movements reflected normal market fluctuations.
Although the price of rice declined, prices of lentils, fruits and several other food items increased.
During the review period, prices of seasonal vegetables such as local and hybrid French beans, pointed gourd, hybrid cucumber and asparagus fluctuated sharply, ranging from 109 percent to 160 percent.
Prices of mustard greens, mushrooms, parsley, tamarind, long yard beans, bamboo shoots, tofu, fermented leafy greens, watermelon, sweet orange, pineapple, Chinese pear, avocado and ginger remained largely stable.
On external factors influencing prices, the department noted that the price of petrol declined to Rs156 per litre from Rs161, while diesel prices fell to Rs136 per litre from Rs146 during the review period. The US dollar exchange rate showed normal to moderate fluctuations.
Price analysis conducted in six cities—Biratnagar, Birgunj, Bhairahawa, Nepalgunj, Dhangadi and Kathmandu—showed that the price of steam jeera masino rice increased by Rs22 per kg, wheat by Rs20 per kg, black lentils by Rs30 per kg, chickpeas by Rs90 per kg and kidney beans by Rs80 per kg within a month. Sugar prices rose by Rs20 per kg to reach Rs105 per kg.
Edible oil prices also recorded notable increases. During the review period, mustard oil prices rose by Rs155 a litre, soybean oil by Rs25 per litre and sunflower oil by Rs48 a litre. Prices of spices surged as well, with cumin increasing by Rs200 per kg and coriander seeds by Rs290 per kg.
Animal protein prices climbed sharply, with eggs becoming costlier by Rs150 per crate, mutton by Rs183 per kg and broiler chicken by Rs100 per kg.
Consumer rights activists criticised the government’s enforcement record, saying the Consumer Protection Act, 2018—which empowers authorities to determine market prices and fix support prices for essential goods—has yet to be effectively implemented.
“It has been eight years since the consumer law came into force,” said Madhav Timilsina, president of the Consumers’ Right Investigation. “The law provisions price regulation, regular inspections and immediate action with fines ranging from Rs5,000 to Rs300,000. While the government has collected millions in revenue through inspections, there has been no visible improvement in market behaviour.”
Consumers, he added, have not felt meaningful change despite repeated inspections, which he said have become routine rather than effective. “On the pretext of political donations during election periods by large producers and importers, prices of rice, edible oil and refined wheat flour have been increased,” Timilsina said.
Activists also argued that with production and supply remaining normal, there is no justification for sharp price hikes at this time.
According to Nepal Rastra Bank, year-on-year consumer price inflation stood at 2.42 percent in mid-January 2026, down from 5.41 percent a year ago. Food and beverage inflation decreased by 0.09 percent, while non-food and services inflation stood at 3.81 percent during the review month.
Within the food and beverage category, the price index for fruits increased by 5.20 percent, ghee and oil by 4.96 percent, and non-alcoholic drinks by 3.04 percent. In contrast, inflation declined for pulses and legumes by 5.52 percent, spices by 3.92 percent, and cereal grains and their products by 3.70 percent.




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