Onion price soars to Rs 115 per kg

KATHMANDU, Nov 26: Onion price has increased by Rs 30 to Rs 115 per kg on Friday. The retail price was hovering at around Rs 85 over the week. Sunday's market price of onion was Rs 78 per kg and the price increased to Rs 85 on Monday which remained constant until Friday, according to retail price chart of Kalimati Market Fruits and Vegetables Market Development Board (KFVMDB).

The traders have blamed India's move to curb export of onion setting minimum prices of US $ 850 per ton behind the sharp rise in the essential vegetable product. India did so to control the price hike of 'politically sensitive product' in its market owing to fall in the production in the country.

“We are buying a kilo of onions at Rs 92 and selling them at the wholesale price of Rs 100. The prices in retails and other markets are up to Rs 120 per kilo,” said Raj Kumar Singh, a wholesaler at Kalimati vegetable market. “The prices are up due to the decrease in output in India due to floods in August,” said Singh. This time the price of onions has increased in India due to low production,” said Hemanta Lal Shrestha, a wholesaler in the market. He also pointed out the same reason behind the price hike. “Any moves taken by India on this product directly affects the price here in our market,” added Shrestha, who is one of the largest onion suppliers.

Traders estimate that the prices may see a further hike if India tightens export fully. “Nepali traders do not have any sort of role in the onion price hike,” said Shrestha. “The Indian supply of onions is less than the demand here,” said Hari Bhandari, another trader.  The wholesalers know the reason behind the sharp rise in the price of onions while the retailers in the market expressed they are unaware of the reasons.

“We do not know the exact reasons. The wholesalers told us that the price has increased here due to the price rise in India,” said Jenisha Gautam, a retailer in the Kalimati market. “We have bought onions at Rs 100 per kilo and have been selling at Rs 120 per kilo since the morning.”

The government of India issued the order of setting the minimum export price for until December end of this year after price of onions hit two years' high in the local market. The price of onions at Lasalgaon, India's largest wholesale onion market in the western state of Maharashtra, rose to IRs 32 rupees (NRs 51) per kilo last week.

This price hike is sure to increase spending in the kitchen by families on top of already high prices of other vegetables in the local market due to fall in the domestic production. Major vegetables like potatoes, tomatoes and cauliflower have seen an unprecedented price hike since Dashain. Nepal has not been able to produce onions though there is high potential, mainly due to the lack of storage facilities among other various reasons. Nepal had imported 120 million kilograms of onions worth Rs 3.26 billion in fiscal year 2015/16.

Source: Republica

Corporate News

Bank deposits growing at almost half the rate of loan expansion

Kathmandu, January 11 - Bankers seem to have largely ignored the credit crunch situation of the last fiscal, as credit expansion of banks is almost double than deposit collection in the first five months of the current fiscal.

Read more ...

SEBON directs hydel companies to disclose financial details before issuing IPO

Kathmandu, January 1 - Securities Board of Nepal (SEBON) has directed hydropower companies to publish a public notice disclosing their net worth and per share income before issuing initial public offering (IPO).

Read more ...

NRB issues foreign employment bonds

KATHMANDU, Dec 13: Nepal Rastra Bank (NRN) is issuing foreign employment saving bonds of Rs 500 million, targeting Nepalis working and residing abroad or those who have recently returned from foreign employment.

Read more ...

NRB proposes threshold for digital payments

Kathmandu, November 30 - Nepal Rastra Bank (NRB) has proposed the threshold for digital payments under card facilities, electronic wallet and mobile banking, and is seeking inputs from stakeholders before issuing a directive to the service providers.

Read more ...
Symbol % Change Last Price Turnover
SLBS 3.8751 965.0 19,120.0
SDESI 1.9718 362.0 3,982.0
SKBBL 1.8644 1,202.0 63,118.0
RBSPO 1.5259 12,775.0 31,031,210.0
RBCL 1.5132 13,350.0 2,127,390.0
Symbol % Change Last Price Turnover
NIBLPF -10.0000 9.0 14,261.0
UMHL -5.3812 211.0 1,808,979.0
GILB -3.8862 1,385.0 284,218.0
ARUN -3.6810 157.0 278,100.0
MPFL -3.6667 289.0 37,246.0
Symbol % Change Last Price Turnover
ODBL 0.4386 229.0 35,464,504.0
RBSPO 1.5259 12,775.0 31,031,210.0
PLIC -1.0391 1,619.0 16,548,109.0
BOKL -2.1164 370.0 11,816,515.0
CCBL 0.0000 200.0 11,343,876.0