Prise Rise of Essential Commodities
Prices Of Daily Essentials Rise
Fig 1: Comparison of Prices of Daily Essential Commodity
Fig 1: Comparison of Prices of Daily Essential Commodity
Nepal’s economic future inevitably depends upon the growth of its agricultural sector. Out of 26.4 million populations, nearly 80% of population is employed directly or indirectly in this field. Despite such a large population working in this field there has been food deficit which resulted into turning out Nepal a net importer from exporter, a big irony for a country like Nepal. We should put all our efforts to increase its supply by enhancing the productivity of the essential goods thus lowering our dependency on imports which accounts to 70% of our imports. Besides increasing the supply it’s equally important to try to bring the stability in its market price. Citizens have been forced to pay higher price either in the name of low supply, increase of price in our neighboring country, or due to the cartelling and price collusion by few suppliers.
Upward trend of price rise of these daily essential goods, has led several economists to apply their theories attempting to explain the pricing behavior in essential goods market. As shown in figure above we can see the price comparison of present market value with market price a month ago. Different facts have been put forward by different groups showing their own reason and limitations behind the rise of price. * Commodities prices are controlled by whole sellers and big supplier oligopolist:
There is a widespread belief that the prices are controlled solely by big supplier oligopolists in the market of essential goods. These suppliers go for price collusion and fix the price they like; they usually withheld the commodity stocks to bump the market price to earn much more than the normal profit during festival time. The price of essential goods tends to go up in a synchronized pattern, which depicts that the price collusion must be occurring between suppliers.
Fig 1: Comparison of Prices of Daily Essential Commodity
Fig 1: Comparison of Prices of Daily Essential Commodity
Nepal’s economic future inevitably depends upon the growth of its agricultural sector. Out of 26.4 million populations, nearly 80% of population is employed directly or indirectly in this field. Despite such a large population working in this field there has been food deficit which resulted into turning out Nepal a net importer from exporter, a big irony for a country like Nepal. We should put all our efforts to increase its supply by enhancing the productivity of the essential goods thus lowering our dependency on imports which accounts to 70% of our imports. Besides increasing the supply it’s equally important to try to bring the stability in its market price. Citizens have been forced to pay higher price either in the name of low supply, increase of price in our neighboring country, or due to the cartelling and price collusion by few suppliers.
Upward trend of price rise of these daily essential goods, has led several economists to apply their theories attempting to explain the pricing behavior in essential goods market. As shown in figure above we can see the price comparison of present market value with market price a month ago. Different facts have been put forward by different groups showing their own reason and limitations behind the rise of price. * Commodities prices are controlled by whole sellers and big supplier oligopolist:
There is a widespread belief that the prices are controlled solely by big supplier oligopolists in the market of essential goods. These suppliers go for price collusion and fix the price they like; they usually withheld the commodity stocks to bump the market price to earn much more than the normal profit during festival time. The price of essential goods tends to go up in a synchronized pattern, which depicts that the price collusion must be occurring between suppliers.