Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Soaring chicken prices have left consumers like Sanumaiya Maharjan, a Babarmahal resident, rethinking their daily meals. Once a staple in her kitchen, chicken is now a weekly indulgence as prices have skyrocketed to NPR 420 per kilogram, up from NPR 320 just a month ago. “I used to buy chicken without hesitation, but now the price makes me pause,” Maharjan told Onlinekhabar. “I hear green vegetables are laden with pesticides, so I prefer meat, but the cost is too high.”
Maharjan’s dilemma reflects a broader trend across Kathmandu, where chicken prices have surged, reducing demand and straining household budgets. Consumers report a sharp decline in purchases, with many opting for alternatives or cutting back entirely.
Retailers Feel the Pinch:
Naresh Shankar, a meat shop owner in Buddhnagar, confirmed the price hike, noting that chicken now sells for NPR 420 per kilogram, up from NPR 390-400 just 15-20 days ago. “Wholesale prices are rising due to lower production in the heat,” Shankar said. “We can’t sell at a loss.” His daily sales have dropped from 60-70 kilograms to 40-50 kilograms, mirroring a citywide decline in demand. Cold stores and retail outlets across Kathmandu report fewer customers, with some shops selling as little as 30 kilograms daily compared to 100 kilograms a year ago.
At a Kupondole cold store, customer Ramesh Shivakoti expressed frustration after finding chicken priced at NPR 400 per kilogram, even at wholesale rates. “A week ago, it was NPR 385. Now we need a special occasion to afford chicken,” he said, criticizing the lack of price regulation. “No one monitors why prices rise. Consumers like us bear the burden while the government looks the other way.”
Industry Insights:
Jung Bahadur BC, president of the National Chicken Sellers Association, attributed the price surge to reduced production caused by rising temperatures. Wholesale prices have climbed to NPR 385 per kilogram, with retail prices ranging from NPR 390 to NPR 420. “When production falls short of demand, prices rise,” BC explained. He noted that Nepal consumes 500,000-700,000 kilograms of chicken daily, with Kathmandu alone accounting for 350,000 kilograms. Despite claims of self-sufficiency, retailers report shortages, forcing them to sell at higher rates.
The Nepal Poultry Federation’s General Secretary, Dinesh Raj Mishra, linked the price hike to seasonal demand spikes from weddings, ceremonies, and reopened school canteens. “Production can’t keep up with consumption right now,” he said. However, he downplayed the impact, arguing that price fluctuations are normal.
Feed Prices Stable, Yet Meat Costs Rise:
Robin Puri, president of the Nepal Feed Industries Association, clarified that poultry feed prices remain stable at NPR 4,000-4,100 per 50-kilogram sack, despite reliance on imported raw materials. “Production is lower due to heat in areas like Butwal and Bhairahawa, where temperatures hit 40-42°C,” Puri said. “This affects chicken, chick, and egg output, driving up prices.”
Consumer Advocates Cry Foul:
Consumer rights activist Madhav Timilsina accused traders of cartel-like practices, dismissing production shortages as an excuse. “Traders claim chickens die in heat or cold to justify price hikes,” he said. “This is deliberate manipulation of supply chains to inflate prices, a crime against consumers.” Timilsina criticized associations for illegally setting prices and urged the Department of Commerce, Supplies, and Consumer Protection to crack down on such practices.
With chicken prices rising from NPR 315 per kilogram in Mangsir 2081 to NPR 420-435 in retail markets, consumers face tough choices. As demand outstrips supply, calls for stricter regulation grow louder to protect households from unchecked price hikes.
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