Households across Nepal are struggling with a sharp rise in the cost of daily essentials, as the prices of rice, edible oil, pulses, vegetables and eggs continue to climb, stretching family budgets just months before the Dashain and Tihar festivals.

While traders attribute the increases to higher import costs, seasonal supply shortages and rising transport expenses, consumer rights advocates say weak market oversight has allowed unjustified price hikes to go unchecked. They argue that inadequate monitoring has created room for profiteering at a time when demand for essential goods traditionally begins to rise.

The increase in food prices comes as consumers are also grappling with an artificial shortage of cooking gas in several parts of the country, adding to concerns over the rising cost of living.

Rice, the country's staple food, has seen some of the steepest increases, with retail prices rising by as much as Rs400 per bag over the past three months.

Vibhor Agrawal, executive director of Radhakrishna Rice Mills and a member of the Nepal Rice, Oil and Pulses Producers Association, said the increase was primarily driven by rising procurement costs in India. Nepal purchases large quantities of paddy from the southern neighbour.

“The price of paddy in India has increased by 800 to 900 Indian rupees per quintal,” Agrawal said. “Once transport costs, milling expenses and customs duties are added, the increase is reflected in retail prices.”

According to Agrawal, a bag of Jira Masino rice that sold for around Rs2,100 three months ago now costs about Rs2,500.

“Wholesale prices have increased by Rs300 to Rs400 per bag across most varieties,” he said. “Nepal does not produce enough paddy to meet domestic demand, so fluctuations in the Indian market immediately affect prices here.”

Industry representatives also point to recent fiscal measures as another factor driving up costs.

From the beginning of the current fiscal year, the government imposed a five percent Value Added Tax on cargo transport services and a 13 percent VAT on electricity used by non-domestic consumers.

Agrawal said the transport VAT alone adds roughly Rs12 to the cost of every bag of rice before it reaches retailers, while higher electricity costs have increased milling expenses.

The price surge is not limited to grains.

Wholesale data from the Kalimati Fruits and Vegetables Market Development Board show that prices of several vegetables have risen sharply over the past month as monsoon rains disrupted production and reduced supplies.

Long eggplant, for instance, was selling at Rs14.25 per kilogram at the wholesale market on July 1. By August 2, the price had climbed to Rs45 per kilogram, an increase of more than 215 percent.

Bitter gourd rose from Rs25 per kilogram to Rs58.33 during the same period.

Leafy vegetables have recorded even steeper increases.

Wholesale mustard greens increased from Rs35 per kilogram on July 1 to Rs175 per kilogram on August 2, with retail prices crossing Rs200 per kilogram in some markets.

Spinach rose fivefold, from Rs55 per kilogram to Rs275, while broadleaf mustard greens increased from Rs45 to Rs125 per kilogram.

Other vegetables also became more expensive.

Wholesale asparagus climbed from Rs276.67 per kilogram on July 1 to Rs450 on August 2. Bananas increased from Rs226.67 to Rs275 per dozen, while ‘Mude’ red potatoes rose from Rs33.25 per kilogram to Rs50.50.

Only a handful of vegetables bucked the trend. Local cucumbers fell from Rs65 to Rs35 per kilogram, while tunnel-grown tomatoes remained largely stable, edging down slightly from Rs20 to Rs19.83 per kilogram.

Binaya Shrestha, information officer at the Kalimati Fruits and Vegetables Market Development Board, said the seasonal decline in production was the main reason for the higher prices.

“Vegetable production declines during the monsoon, resulting in lower arrivals at wholesale markets,” Shrestha said. “Demand remains relatively stable, but supply falls, creating upward pressure on prices.”

He said the current period marks the transition between summer and winter vegetable production, while persistent rainfall has affected yields in many growing areas.

“Summer crops are nearing the end of their season, while winter vegetables have not yet entered the market,” Shrestha said. “In many hilly districts, vegetable cultivation has declined, and farmers in the Tarai are occupied with paddy transplantation.”

He added that tunnel farming had helped maintain the supply of tomatoes and cucumbers, preventing significant price increases in those crops.

Shrestha said there had been no prolonged highway closures caused by landslides in recent weeks, suggesting that reduced production rather than transport disruptions had been the main driver of the price increases.

The pressure on household budgets extends beyond vegetables.

Egg prices, which dropped sharply after outbreaks of avian influenza triggered panic selling, have rebounded in recent weeks.

Wholesale prices have increased by Rs30 per crate. Large eggs now sell for Rs530 per crate, up from Rs500, while medium-sized eggs have increased from Rs470 to Rs500. Extra-large eggs have risen from Rs515 to Rs545 per crate.

Before the bird flu outbreak, large eggs were selling for Rs535 per crate. Prices later fell to Rs475 as farmers rushed supplies into the market. Retail prices have now climbed to around Rs600 per crate.

Producers say the market is gradually returning to normal as poultry farms recover from the impact of the disease, but they do not expect prices to fall significantly in the short term because feed, transportation and production costs remain high.

Consumer rights campaigners say the continuing increases in the prices of essential goods underscore long-standing weaknesses in Nepal’s market regulation system.

They argue that while seasonal factors and import costs influence prices, inadequate monitoring has made it difficult to distinguish between genuine cost increases and excessive mark-ups by traders. They have urged the government to intensify market inspections, monitor supply chains more closely and act against businesses found manipulating prices ahead of the festive season.

With demand expected to rise further in the coming weeks, many households fear the burden of maintaining even a basic kitchen will become heavier unless supplies improve and prices stabilise.

Despite the rise in retail prices, poultry farmers say they are still struggling to recover production costs as the sector continues to feel the impact of avian influenza outbreaks.

Binod Pokharel, president of the Nepal Layers Poultry Farmers Association, said the market is facing a structural supply shortfall after more than 1.2 million laying hens were culled during bird flu outbreaks.

“As a result, national production has been unable to keep pace with demand,” Pokharel said. He rejected claims that current prices amount to excessive profiteering, noting that egg prices had climbed as high as Rs750 per crate three years ago.

“Farmers currently sell eggs at around Rs500 per crate at the farm gate,” he said. “To cover feed and operating costs, the farm-gate price should be at least Rs573 per crate.”

According to the association, Nepal consumes between three million and four million eggs a day, while current production stands at between 2.9 million and 3 million eggs.

Consumer rights advocates say meat prices have also increased sharply in recent months.

Following the bird flu outbreak, the retail price of goat meat rose from around Rs1,250-1,300 per kilogram to between Rs1,700 and Rs1,750 per kilogram. Consumer rights activists argue that such increases, despite relatively subdued demand, warrant closer scrutiny by market regulators.

The upward trend extends to other household essentials.

Refined sugar is currently retailing at around Rs115 per kilogram, while edible oil prices have also risen across the market.

According to the Nepal Retail Trade Association, sunflower oil is selling at around Rs290 per litre in both the wholesale and retail markets, while soybean oil is priced at Rs285 per litre.

Price lists published by the state-owned Food Management and Trading Company show sunflower oil selling at Rs300 per litre and soybean oil at Rs285 per litre, placing the state retailer’s sunflower oil above the prevailing market price.

Rajesh Kumar Agrawal, former president of the Confederation of Nepalese Industries, attributed the rise in edible oil prices to higher international costs.

“Raw edible oil prices in international markets have increased, the US dollar has appreciated against the Nepali rupee and international freight charges have also risen,” Agrawal said. “When costs increase throughout the supply chain, domestic prices inevitably follow.”

Retailers, however, say they are merely passing on higher procurement costs.

Amul Kaji Tuladhar, general secretary of the Nepal Retailers Association, said neighbourhood grocery stores have little influence over pricing.

“Retailers do not increase prices arbitrarily,” Tiwari said. “We buy goods at higher prices from manufacturers and wholesale importers and adjust retail prices accordingly. The government should examine why industrial producers and importers are increasing their prices.”

As households grapple with rising food costs, consumers in Kathmandu Valley are also facing shortages of Liquefied Petroleum Gas (LPG), forcing many to queue for hours in search of cooking fuel.

With demand rising and panic buying spreading, the state-owned Nepal Oil Corporation (NOC) began direct sales of LPG cylinders from its central office in Teku, Kathmandu, on Saturday.

Long queues formed outside the depot as consumers carrying empty cylinders waited to exchange them for refilled cylinders of Nepal Gas, HP, Everest, Sugam and Shreeram Gas.

The current shortage has its roots in supply management measures introduced earlier this year.

On March 13, amid concerns over global supply chains linked to tensions in West Asia and volatility in international energy markets, the NOC introduced a quota system under which consumers were supplied only half-filled cylinders weighing 7.1 kilograms.

After receiving assurances from Indian suppliers that supplies had stabilised, the corporation lifted the restriction on July 15 and resumed the distribution of standard 14.2-kilogram cylinders.

According to Manoj Kumar Thakur, spokesperson for the NOC, the shift back to full cylinders created an unexpected surge in demand.

During the four months in which half-filled cylinders were distributed, many households delayed replacing their cylinders in anticipation of the return of full-sized refills.

Monthly LPG consumption in Nepal generally ranges between 45,000 and 46,000 tonnes, Thakur said.

When full cylinders became available again, households returned large numbers of empty cylinders simultaneously, putting pressure on bottling plants and dealers.

“Thousands of empty cylinders entered the distribution system at once, exhausting available stocks at dealer outlets,” Thakur said. “The shortage has been driven mainly by panic buying rather than any disruption to imports.”

He said supplies from the Indian Oil Corporation continue without interruption and expressed confidence that LPG distribution across Kathmandu Valley would return to normal within seven to ten days.

To ease public concern, the NOC has been distributing between 100 and 150 cylinders a day directly from its Teku depot.

Consumer rights advocates, however, say the difficulties surrounding food prices and cooking gas highlight broader weaknesses in market regulation.

Madhav Timalsina, president of the Consumer Rights Research Forum, questioned claims that global factors alone explain the sustained rise in the prices of essential goods.

“There is no convincing economic basis for continuous increases in the prices of rice, pulses, vegetables, eggs and meat,” Timalsina said. “International supply chains have largely stabilised, and tensions in West Asia have eased compared with earlier months. Weak market regulation and ineffective monitoring are allowing prices to rise unchecked.”

Timalsina also criticised the government's enforcement of transport pricing.

He noted that although the Department of Transport Management announced a two percent reduction in inter-provincial public transport fares effective July 2, following a fall in diesel prices from Rs235.83 to Rs193.83 a litre on July 1, many transport operators have continued charging the previous fares.

He further argued that the government’s decision to impose a 5 percent VAT on freight transport services and a 13 percent VAT on non-domestic electricity from the start of the current fiscal year has been used to justify broader increases in retail prices.

“When the state focuses on collecting revenue but fails to monitor markets, inspect wholesale traders or act against hoarding and price manipulation, consumers ultimately bear the cost,” Timalsina said. “With the festive season approaching, stronger market oversight is urgently needed to protect households already under severe financial pressure.”