Floods and Landslides Disrupt Nepal's Economy and Daily Life

Kathmandu. The floods and landslides that have occurred in various parts of the country due to continuous rain have disrupted the lives of the entire nation. It has not only caused damage to physical structures and human lives but has also severely affected the country's economic system and daily supply chain. The Kathmandu Valley has been directly and severely impacted. With the major highways connecting the valley to other parts of the country blocked by floods and landslides, the prices of vegetables, fruits, and daily essential food items in the market have skyrocketed. Taking advantage of the disaster, artificial scarcity and black marketeering have flourished, causing ordinary citizens to worry about how to manage their daily meals. The Kathmandu Valley itself is a consumption-oriented city rather than a production-oriented one. Most of the vegetables, fruits, rice, lentils, oil, and other food items consumed here are imported from various districts of the country and neighboring India. Districts like Dhading, Nuwakot, Kavre, Makwanpur, Chitwan, and those in the mid-hills and Terai are major sources of vegetables and food for the valley. However, continuous heavy rainfall has blocked all routes connecting to Kathmandu except the Tribhuvan Highway. Major road sections like the Prithvi Highway, BP Highway, and Madan Bhandari Highway have been damaged in various places. In some places, the road itself has been washed away, while in others, landslides have created a situation where the road may not be cleared for months. Vegetable prices have surged according to government data According to the official data of the Kalimati Fruits and Vegetables Market Development Committee, the prices of most daily essential agricultural produce have increased abnormally from Bhadra 10 to Ashwin 11. With the festive season approaching, the prices of essential vegetables have surged by 100 to 250 percent, severely impacting ordinary consumers. The price of green chilies, which cost only Rs 47.50 per kg a month ago, has increased by 271.94 percent to Rs 176.67. Similarly, long green chilies, available at Rs 55 per kg, have increased by 209 percent to Rs 170, while the prices of 'mache' green chilies and 'bhede' chilies have also increased by more than 100 percent to Rs 91.67 and Rs 95 respectively. The price of tomatoes, used in every vegetable dish, has also become high. Local small tomatoes, which cost Rs 38.75 per kg on Bhadra 10, have become 67.74 percent more expensive, reaching Rs 65. Likewise, Nepali large tomatoes have increased by 43.47 percent from Rs 76 to Rs 110, while the prices of tunnel and Indian small tomatoes have also increased by 46 and 63 percent respectively. The prices of basic vegetables like potatoes and onions are also on the rise. The prices of Indian and red potatoes have increased by 16 to 30 percent, while the price of dried onions has reached Rs 95 per kg. The prices of other daily green vegetables have also more than doubled in a month. Long eggplants, available at Rs 20 per kg, have increased by 125 percent to Rs 45, while white hybrid radish, priced at Rs 30, has increased by 116 percent to Rs 65. Local cabbage, priced at Rs 32.50, has doubled in price to Rs 65. Vegetables like carrots, beans, bitter gourd, broccoli, and spinach have seen price increases of 50 to 80 percent. The price of imported vegetable parsley has increased by 52 percent from Rs 1700 per kg to Rs 2600. Food grain prices also increased, government monitoring is ineffective The problem is not limited to vegetables and perishable agricultural produce. The prices of long-storable food items like lentils, rice, cooking oil, beaten rice, and flour have also increased significantly. Wholesale traders are arbitrarily increasing prices on existing stock, citing road blockades and the inability to bring in new goods. Traders argue that prices have increased due to higher transportation costs, the risks involved in bringing goods, and reduced supply. However, consumer rights activists consider this outright black marketeering and economic crime during a disaster. 'When there is enough stock of rice and lentils for months in the godowns, increasing the price by hundreds of rupees per bag overnight is the height of profiteering. A syndicate of middlemen and a few large traders has taken control of the market, leading to a significant difference in the price of the same goods from wholesale markets to retail stores,' says consumer rights activist Jyoti Banian. Consumers complain that the Department of Commerce, Supply, and Consumer Protection is only performing symbolic actions like imposing fines on a few retail stores in the name of market monitoring. The root of the problem lies in the network of wholesalers, large godowns, and middlemen, but the government's monitoring mechanism has not reached there or does not want to. Even government officials admit that market monitoring has not been effective due to limited manpower and other reasons. With the festivals approaching, the current market inflation is likely to cause further hardship. During festivals, it is customary to eat delicious food and wear good clothes. However, with the prices of lentils, rice, and basic vegetables becoming unaffordable, low and middle-income families are worried about how they will celebrate the festivals. State-owned enterprises like the Food Management and Trading Company and Salt Trading Corporation have operated fair-price shops, but their reach and capacity are limited, so ordinary consumers have not felt much relief. Due to limited supplies in government shops and the hassle of long queues, many citizens are forced to buy goods from private stores, even at higher prices. Farmers are not getting fair prices, lack of cold storage The story of this disaster is not limited to the suffering of urban consumers. While prices of vegetables and food grains are skyrocketing in the city, the condition of farmers toiling in the villages is even more heartbreaking. Vegetables cultivated by farmers in Dhading, Kavre, and Makwanpur for months are rotting in the fields. Due to road blockades, they have not been able to bring their produce to the city. While consumers in the city are paying more than Rs 200 per kg for green chilies, farmers in the villages are unable to sell the same chilies even for Rs 50. Some farmers who planted cabbage and cauliflower have been forced to feed their produce to cattle or plow it back into the fields as the income from selling them would not even cover transportation costs. On one hand, there is chaos and inflation in the city, while on the other hand, produce is going to waste in the villages. Avinash Silwal, an agri-entrepreneur and agricultural economist, says, 'This clearly exposes the pathetic state of our agricultural market management, supply chain, and state infrastructure development. This distorted system, where farmers and consumers suffer while intermediaries profit, is hollowing out Nepal's economy from within.' He adds, 'The lack of cold storage and godowns has also exacerbated this problem. If there were sufficient cold storage facilities in and around the Kathmandu Valley, the supply of vegetables and fruits could have been maintained for a few weeks even during road blockades.' Silwal suggests, 'The state needs to invest in establishing storage facilities in villages to prevent the spoilage of vegetables produced by farmers. This will not only prevent scarcity in cities during times of disaster but also guarantee fair prices for farmers for their produce.'