Staple food will be cheaper over next few months: Report

KATHMANDU, Nov 24: Though officials have estimated overall production of major cereal crops to go down this year compared to last year, food supplies is expected to improve briefly with the onset of harvest season leading to fall in prices of major staple food, a quarterly report on market situation shows.



The quarterly report published jointly by Ministry of Agriculture Development (MoAD) and World Food Programme (WFP) says the food supply has increased in different districts with the beginning of harvest season of summer crops. [break]Improved transport access and end of rainfall ensure better supplies, which will lead to further reduction in the prices of food grains, in the coming days.



"Roads linking markets in hilly and mountainous districts have been functioning smoothly with the end of monsoon in September, contributing to rise in food supply,” the report states, adding, “Price of rise in major markets across the country has come down over the past three months.”



The MoAD, however, has estimated paddy and maize to come down by 14 percent and 10 percent, respectively this year compared to last year. According to the report, country´s total paddy output is expected to drop by 720,000 tons this year from all time high production of 5.07 million tons recorded last year. Likewise, maize production is send coming down by around 164,000 tons due to insufficient rainfall in the plantation season.



Paddy price in the country has remained unchanged since October when paddy harvesting begins.



Price index increment rate of staple foods and beverage in September was lower than the macroeconomic inflation rate released by Nepal Rastra Bank (NRP), the central monetary authority.



The inflation was recorded at 11.2 percent in September, while the price index of food and beverage increased by 10.4 percent in the same month last year, according to the report.

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