Middle East war drives up prices of essential food products in Nepal

Rising tensions in the Middle East, particularly around the Strait of Hormuz, are disrupting energy supplies and pushing global food costs higher. Attacks on vessels and regional instability have led to increased fuel, fertilizer, and shipping costs, which are gradually being passed on to consumers worldwide.

Although Nepal relies heavily on food imports from India and edible oil from Southeast Asia, the strengthening US dollar and rising transportation costs are already affecting domestic prices. Analysts warn that, as a country highly dependent on imports of food, fuel, and fertilizers, Nepal remains particularly vulnerable to global price shocks in the near term.

On the domestic market, price increases are becoming evident. Imported rice from India has reportedly risen by around Rs100 per sack, while sunflower oil prices have jumped by about Rs80 per litre, reaching up to Rs300. However, some industry representatives note that rice price increases are more moderate, ranging between Rs10 and Rs25 per sack, partly driven by panic buying and stockpiling by households.

Market experts also point to signs of speculation, with some traders and manufacturers raising prices despite stable supply conditions. Political factors, including the announcement of midterm elections, have further contributed to uncertainty and volatility in the market.

If tensions in the Middle East escalate further and energy prices remain high, the impact on food prices could intensify. According to the World Food Programme, rising food and fuel costs could push an additional 45 million people into acute hunger globally, bringing the total to a record 363 million.

Tags: prices, food, Nepal