May 15, 2025

 

Chicken meat, egg prices in Nepal on the rise, with traders accused of inflating prices

 

 

Nepal's chicken meat and egg prices have risen sharply of late, with poultry traders citing soaring temperatures and reduced production as the leading causes.

 

However, consumer rights advocates dispute this explanation, accusing traders of artificially inflating prices through cartel-like behaviour.

 

According to the Poultry Market Management Association, the wholesale price of chicken has jumped to रू390 (US$2.93) per kilogramme, while retailers charge between रू410–रू450 (US$3.08–3.38) per kg in different parts of the country. Just a month ago, prices hovered around रू380 (US$2.85) per kilogram.

 

Junga Bahadur BC, president of the association, attributed the price hike to a significant drop in production, especially in the Tarai region, where scorching temperatures have reportedly cut output by half. Despite this, poultry traders confirm that supply has remained consistent and consumer demand has not decreased.

 

Kathmandu Valley alone consumes approximately 500 tonnes of chicken meat daily, highlighting the scale of the industry.

 

Similar trends are emerging in the egg sector.

 

Binod Pokharel, president of the Nepal Layers Poultry Association, said the production cost per egg currently stands at रू16.56 (US$0.12), or about रू496 (US$3.72) per crate. While crate prices had recently dropped to रू360–रू370 (US$2.70–2.78), they have since surged to रू460 (US$3.45), and in some places even रू500 (US$3.75) per crate.

 

"Even with the recent uptick in prices, farmers are still struggling to recover their investment," Pokharel said. He added that intense heat has reduced laying rates, leading to a drop in supply. Many farmers have sold off their stock after suffering repeated losses.

 

However, Pokharel clarified that the retail price of eggs has remained stable at around रू20 (US$0.15) apiece, despite traders buying from farmers at roughly रू12 (US$0.09) apiece. A crate contains 30 eggs.

 

While poultry entrepreneurs insist the price fluctuations are linked to seasonal production changes, consumer rights activists allege foul play. They argue that traders manipulate prices under the guise of reduced output, aided by weak market oversight.

 

Madhav Timalsina, president of the Consumer Rights Investigation Forum, dismissed the heatwave explanation.

 

"The temperature hasn't spiked dramatically, nor have poultry feed prices increased significantly. This is a result of coordinated price manipulation," he said.

 

Timalsina accused poultry associations of intentionally reducing production to justify inflated prices. "Within just 20 to 25 days, traders raised the price of chicken by रू150 (US$1.13) per kilogramme and eggs by रू100 (US$0.75) per crate. This can only be the result of a cartel," he said.

 

Under the Nepali law, no business group or association can set commodity prices unilaterally. But according to Timalsina, traders are openly violating these rules. "If one or two individuals or groups are deciding prices in isolation, that's a cartel—and it is punishable under competition law," he said.

 

Despite the Competitive Market Protection Board under the Ministry of Industry, activists said the body has remained passive. The board is responsible for taking legal action against businesses involved in anti-competitive practices like price-fixing and market manipulation. However, its inaction has reportedly emboldened traders to continue unchecked.

 

"Traders are exploiting the board's dormancy by deliberately disrupting supply and manipulating market dynamics," Timalsina said.

 

Activists also alleged that political connections are shielding some traders from legal scrutiny. They said ties between local business owners and political figures have contributed to a rise in market distortions and a lack of accountability.

 

Consumers have borne the brunt of these practices, even as official inflation figures suggest a more modest rise. According to the Nepal Rastra Bank, year-on-year consumer price inflation stood at 3.39% as of mid-April, down from 4.61% a year ago. However, the price index for milk products and eggs rose by 2.65% during the same period.

 

Kamana Bogati, owner of Chicken Fresh House in Dhobighat, said that while prices have increased, demand remains steady. "I'm selling chicken at रू415 (US$3.11) per kilogramme, which I purchase at रू385 (US$2.89). A fluctuation of रू20 to रू30 (US$0.15–0.23) doesn't usually impact demand," said Bogati, who has been in the poultry business for 15 years. "Sales only begin to decline when prices cross रू500 (US$3.75) per kg."

 

Poultry farmers said production typically drops for two to three months during the peak summer season. They expect prices to normalise once temperatures fall and output improves.

 

According to the Livestock Statistics of Nepal published by the Department of Livestock, the country produced 200,658 tonnes of chicken meat and 1.6 billion eggs in the fiscal year 2022–23.

- The Kathmandu Post