The prices of chicken meat and eggs have surged dramatically across Nepal, sparking heated debates between poultry traders and consumer rights advocates. While traders attribute the rise to soaring temperatures and reduced production, critics argue that the increase is a result of artificial price inflation driven by cartel-like behavior.
Rising Prices Amidst Controversy
According to the Poultry Market Management Association, the wholesale price of chicken now stands at Rs390 per kilogram, with retail prices ranging between Rs410 and Rs450 in different regions. Just a month ago, prices hovered around Rs380. Junga Bahadur BC, president of the association, cites the heatwave’s impact on production—particularly in the Tarai region, where output has reportedly halved—as the primary reason for the spike.
Despite these claims, poultry traders confirm that supply remains consistent and consumer demand has not wavered. In Kathmandu Valley alone, around 500 tonnes of chicken meat are consumed daily, underlining the industry’s scale and importance.
Egg Prices Also on the Rise
The egg market is witnessing a similar trend. Binod Pokharel, president of the Nepal Layers Poultry Association, highlighted that the production cost per egg now stands at Rs16.56. While crate prices had recently dipped to Rs360–370, they have since soared to Rs460—and in some areas, even Rs500 per crate. Despite this, the retail price remains stable at around Rs20 apiece, though farmers sell them for just Rs12 each.
Pokharel attributes the drop in egg supply to the intense heat affecting laying rates, forcing many farmers to sell off their stock after incurring repeated losses. Yet, consumer rights activists remain unconvinced, alleging price manipulation and lack of market oversight.
Allegations of Cartel Behavior
Madhav Timalsina, president of the Consumer Rights Investigation Forum, dismisses the traders’ explanation, pointing to price manipulation. He asserts that poultry associations are intentionally cutting production to justify inflated prices. “Within just 20 to 25 days, traders raised the price of chicken by Rs150 per kilogram and eggs by Rs100 per crate,” he said, claiming this sharp rise is symptomatic of cartel behavior.
Nepali law explicitly prohibits unilateral price-setting by business groups, but Timalsina claims the practice is rampant and largely unchecked. He criticizes the Competitive Market Protection Board under the Ministry of Industry for its inaction, which he believes has emboldened traders to manipulate market prices without fear of legal consequences.
Political Influence and Market Distortion
Consumer rights activists also point to political connections as a shield for some traders. Allegations suggest that business owners with political ties face less scrutiny, allowing for unchecked price hikes and market distortions.
Meanwhile, consumers are left to bear the brunt of rising costs, even as official inflation statistics suggest only modest increases. According to the Nepal Rastra Bank, year-on-year consumer price inflation was 3.39% as of mid-April, while the price index for milk products and eggs rose by 2.65%.
The Way Forward
As debates over market manipulation continue, poultry farmers maintain that production typically dips during peak summer months but is expected to stabilize as temperatures drop. According to the Department of Livestock’s Livestock Statistics of Nepal, the country produced 200,658 tonnes of chicken meat and 1.6 billion eggs in the fiscal year 2022–23, underscoring poultry’s significance in the national diet and economy.
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