In Nepal, recent severe flooding and landslides have led to a dramatic decrease in food and vegetable supplies in Kathmandu, as critical roads connecting the Valley have been obstructed. The situation has resulted in an increase in food and vegetable prices, with traders warning of further rises if the highways are not reopened soon. The heavy rainfall, the most significant in 54 years, has inundated warehouses and markets, notably affecting the Balkhu and partially the Kalimati markets, key distribution points for fresh produce.
Landslides triggered by the rainfall have severely disrupted supply lines from Dhading and Kavre, major vegetable supplying districts to Kathmandu, causing a sharp decline in the availability of fresh produce. The blockage of key highways, including the Tribhuvan, Prithvi, and BP highways, has compounded the issue, with the Kalimati market reporting a significant drop in vegetable supplies.
According to Binay Shrestha, information officer at the Kalimati Fruits and Vegetable Market Development Board, the supply constraint has led to an increase in vegetable prices due to the imbalance between low supply and high demand. The market has seen a reduction in vegetable supplies, with only a fraction of the usual amounts being received, mainly from local tunnel farms, which have also been affected by the floods.
The wholesale price index has shown a marked increase in the prices of several seasonal green vegetables, with notable jumps in the costs of tomatoes, cowpeas, bitter gourd, and smooth gourd. The approaching festival season, coupled with the already high vegetable prices, has raised concerns among consumers.
A report from the central bank highlighted a rise in food and beverage inflation, with vegetables, pulses and legumes, and cereal grains experiencing significant price increases. The flooding has also impacted warehouses, potentially leading to further price hikes. Retailers, however, have reported sufficient stock of essential food items, suggesting that the immediate impact on prices for these goods may be limited. Nonetheless, the disruption in transportation and damage to goods in flooded areas may result in price adjustments to cover losses.
Consumer rights activists have expressed concerns over potential artificial shortages and price manipulation, urging the government to enhance market monitoring and ensure the availability of essential supplies. The recent events have underscored the vulnerability of Kathmandu's supply chains to natural disasters and the need for effective disaster preparedness and response strategies to mitigate the impact on food security.
Source: The Kathmandu Post