In Nepal, the onset of the monsoon season has led to a surge in vegetable prices within the Kathmandu valley. The increase affects daily essentials such as ginger, green chillies, tomatoes, and potatoes. Traders attribute this rise to a decrease in production caused by low rainfall during the pre-monsoon period and subsequent supply chain disruptions due to floods and landslides. The winter drought preceding spring further contributed to reduced vegetable output.
According to Nepal Rastra Bank's macroeconomic report, vegetable prices witnessed a 23.11 percent increase by mid-May. A variety of vegetables, including tomatoes, potatoes, onions, and leafy greens, have become more expensive over the past month. Binay Shrestha from the Kalimati Fruits and Vegetable Market Development Board notes a decrease in the supply of home-grown vegetables, necessitating imports, predominantly from India. The monsoon's early arrival this year exacerbated supply challenges, with the Kalimati market experiencing a 7 percent decline in daily vegetable arrivals.
Fluctuations in the prices of tomatoes, potatoes, and onions are notable, with significant shifts in the wholesale prices of these vegetables. The imposition of an export tax by India on onions has influenced price increases. Additionally, the prices of other vegetables like cauliflower, cowpeas, and French beans have also risen substantially.
Despite the seasonal increase in vegetable production through tunnel farming, which is less affected by rain, the overall supply and price dynamics remain impacted by the monsoon. Last year, farmers protested low tomato prices by discarding their produce, highlighting the volatility of the market.
Source: kathmandupost.com