Money
Gas shortages push Nepali households towards electric stoves
Imports of induction and infrared cookers have surged as unreliable LPG supplies and rising prices drive consumers to alternative cooking options.Prakriti Dahal
As cooking gas supplies become increasingly erratic and shortages persist, Nepali consumers are turning to electric stoves as an alternative. The rise in demand has also begun to push up prices, traders say.
Import figures from the Department of Customs show a sharp increase in shipments of electric cooking appliances, including induction and infrared stoves and rice cookers, during the first two months of the current fiscal year, which began in mid-July.
In the first two months alone, Nepal imported induction stoves worth Rs43.78 million, with 19,508 units entering the country, according to the department. Imports of infrared stoves were even higher, at 41,229 units worth Rs87.54 million.
During the same period a year earlier, Nepal had imported only 11,663 induction stoves worth Rs25.73 million. Imports of infrared stoves stood at 13,567 units worth Rs24.69 million.
During the same period a year earlier, Nepal had imported only 11,663 induction stoves worth Rs25.73 million. Imports of infrared stoves stood at 13,567 units worth Rs24.69 million.
Rice cooker imports have also increased. In the first two months of the previous fiscal year, Nepal imported 47,400 rice cookers worth Rs66.2 million. This fiscal year, imports have risen to 73,000 units worth Rs119 million.
Businesses have stepped up imports as demand for induction and other electric stoves has increased. Traders say they are now bringing in significantly larger quantities than before to meet the growing demand.
Gobinda Prasad Kandel, executive chairman of Orchid Electricals, an importer of infrared stoves, said demand had risen because of both government efforts to promote electric cooking and recurring shortages of cooking gas.
“The volume of infrared stoves we import has increased along with the gas shortage,” Kandel said. “Previously, we used to bring in around 500 units at a time along with other goods. Now, because demand has increased, we import as many as 6,000 units in a single container.”
Orchid, which sells induction and infrared stoves under its own brand, offers models priced between Rs2,500 and Rs2,800, Kandel said.
He said prices of electric stoves had increased by 15 to 20 percent as imports rose. But he attributed the increase mainly to higher transport costs and the stronger US dollar rather than a sharp rise in manufacturing costs.
Kandel said the market price had not increased significantly. The cost of raw materials had risen because transport was disrupted by the US-Iran conflict, while the recent appreciation of the dollar had also pushed up costs. He said the government had not increased customs duties.
“Production costs have not risen so sharply that prices should increase by 50 percent or even double. The recent rise in the dollar has also pushed up prices to some extent,” Kandel said.
The government has also given greater priority to electric cooking in recent years. In its budget for the current fiscal year, it has identified clean cooking energy technologies as a priority and set a target of expanding electric and improved stoves to 250,000 households.
The government has also scrapped the 1 percent customs duty previously levied on imports of electric stoves. According to the Department of Customs, importers now need to pay only the 13 percent value-added tax.
Prices of induction and infrared stoves vary depending on the brand, wattage and model. The market offers single-burner and double-burner models, as well as combination stoves that use both induction and infrared technology.
KR Khanal, founder of Ultra Group Nepal, said government policy had also helped increase consumer interest in electric stoves. Their convenience and ability to save time were additional reasons for the growing demand, he said.
Infrared stoves are generally easier for consumers to use than induction models. Induction stoves require magnetic cookware, whereas infrared stoves heat the cooking surface themselves and can be used with virtually any type of cookware.
“Induction stoves require compatible cookware,” Khanal said. “With infrared stoves, consumers can use all the types of cookware they already have.”
The increased use of electric stoves has also boosted sales of induction-compatible cookware, Khanal said.
He said traders were finding it difficult to maintain old prices as import costs increased. Even if a shipment had arrived at a lower cost, the next shipment could be considerably more expensive, making it difficult for retailers to maintain a uniform price.
“It would be wrong to say that every trader is taking advantage of the situation, but some may be,” Khanal said. “The shortage may have led some to raise prices, but the actual cost has also gone up.”
Nepal has experienced repeated cooking gas shortages since February, increasing uncertainty among consumers. Traders say this has been a major factor behind the shift towards electric stoves.
While the government has removed customs duties to encourage the use of electric cooking appliances, electricity consumption itself is subject to value-added tax. Households consuming up to 50 units of electricity receive a concession, while electricity beyond that threshold is taxed at 13 percent, with a 5 percent rate applying under the stated concession arrangement.
Meanwhile, Nepal Electricity Authority last Tuesday shared a post on its Facebook page titled “How to reduce electricity consumption?” It urged consumers to save energy for future security by switching off electrical appliances when not in use.
The authority also advised consumers to limit the use of appliances that consume large amounts of electricity and to choose energy-efficient equipment.
“Small habits can bring big savings. Saving energy is everyone’s responsibility,” the post said.
A day earlier, Minister for Energy, Water Resources and Irrigation Biraj Bhakta Shrestha had also urged consumers to use electricity only when necessary and avoid leaving lights on where they were not needed.
Speaking to reporters after a parliamentary meeting on Monday, Shrestha said that even leaving a multi-plug switched on could account for 20 percent of electricity consumption.
“The infrastructure is old, while electricity demand is increasing. The use of electrical appliances, air conditioners and electric vehicle charging is also growing,” Shrestha said. “It is not that we lack electricity. The infrastructure is old. That is why the government has made upgrading the distribution system a priority this year.”




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