Noodles prices go up by 20 percent

POKHARA, Nov 2: All instant noodle manufacturing companies have raised the retail prices of their products by 20 percent citing hike in prices of raw materials and high labor cost.

This means each standard packet (75 grams) of noodles will now cost at least two rupees more.



The decision was taken at a recent meeting of Nepal Instant Noodles Producers´ Association. The meeting also decided to raise the wholesale price of noodles by 10 percent. The manufactures said this was the first time they raised the price of noodles in the last four years.[break]



Pokhara Noodles, for instance, has raised prices of all of its brands of noodles effectively from Wednesday. The company manufactures various brands of noodles such as Ramba, Ramba Premium, Sarara, Samaya, Hot Pot, Jojo, Tara, Chino and Leader.



Currently, more than half a dozen noodle manufacturing industries are operating in the country. These companies produce noodles such as Wai Wai, Mayos, Ramba and Rum Pum.



Manufactures said they were left with no other option but hike price as production cost went up due to rise in prices of raw materials. Prices of raw materials have gone up because Nepali currency has weakened against the US dollar, making imported goods expensive.



The recent hike in wages of workers was another factor that pushed up production cost of noodle producers, according to manufacturers.



“The hike in wages coupled with rise in prices of raw materials have added financial burden on our companies. To cushion the impact, we had to raise the prices,” Baburam Pant, executive director of Pokhara Noodles, explained.



He, however, said: “As an incentive to our clients, we have added quantity to the packets of noodles.” According to him, a packet of Ramba noodles, which used to contain 70 grams of noodles, now has 75 grams. “Similarly, 50-gram noodles packets now weigh 60 grams,” Pant added.

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