Staple cereal prices remain stable in May

The price of staple cereals has remained relatively stable in the last one month, according to a report.
"The average price of coarse rice has increased by a nominal 0.9 per cent, while that of wheat flour has decreased by 1.2 per cent in the past one month," according to the report jointly prepared by World Food Programme Nepal (WFP), Ministry of Agriculture and Cooperatives-Department of Agriculture, Agribusiness Promotion and Marketing Development Directorate, Federation of Nepalese Chamber of Commerce and Industries/Agro Enterprise Centre and Consumer Interest Protection Forum.
In the markets regularly monitored by the ministry and and WFP, the national average price of most of the commodities remained stable in the month of June compared to May.
The average price of coarse rice was Rs 35.4 per kg, while that of wheat flour and potato were Rs 35.3 and Rs 21.7 per kg respectively. In the last quarter, the national average prices of mustard oil and coarse rice increased by three per cent and 2.2 per cent respectively, while that of broken lentil, black gram and wheat flour decreased by 9.1 per cent, 6.8 per cent and 4.9 per cent respectively.In major consumer markets, the average price of coarse rice increased by 1.3 per cent, while that of wheat flour remained same, according to the report. The average price of coarse rice increased by 2.8 per cent in mountain and hill markets with road access and by 0.8 per cent in Tarai markets compared to a month ago.
The price of coarse rice in mountain markets without road access like Dolpa remained high and stable at Rs 95 per kg. However, the average price of wheat flour decreased by 2.2 per cent in mountain and hill, and by 0.9 per cent in Tarai markets compared to May.
However, price of wheat flour is likely to be stable in the next month, while prices of coarse rice and lentils are likely to increase until the next harvest which is normally expected in October-November.
The recent rise of fuel prices in India, and disruption of road transportation due to natural hazards like landslides and floods in the monsoon is likely to put upward pressure on food prices in hill and mountain markets.
Similarly, in the wholesale market monitored by FNCCI/AEC, the average price of coarse rice from five large markets — Birtamod, Kathmandu, Butwal, Surkhet and Dhangadi — increased by 12.6 per cent to Rs 33.1 in June compared to a month ago, the report said, adding that the year-on-year price inflation in mid-May remained at 9.5 per cent compared to 8.8 per cent in the previous period.
The food and beverage price index increased by 16 per cent, while the index of vegetable sub groups increased by the highest rate of 48.3 per cent compared to 3.8 per cent decline in the previous period.
Petrol price increased from Rs 97 in March to Rs 102 per litre in May. The report attributed continuous rise in petroleum prices to an increase in food transportation costs leading to rise in food prices.
As a result, the year-on-year transport price index in mid-May rose by 10.1 per cent compared to previous period.