Urgent measures needed to protect the poor

The government has not shown much urgency in dealing with the unfolding economic crisis.

It has been some time since the impact of tensions in West Asia has been felt by Nepali households. Prices of staple foods and daily essentials have soared, transport costs have risen to record levels, and farmers who rely on imported raw materials and fertilisers needed for the main paddy planting season are struggling to sustain farming. As recently reported by the Post , the price of a 25-kg bag of rice, which previously cost Rs2,000, now goes for Rs2,250. Edible mustard oil prices have also gone up by Rs20 to Rs30. Similarly, diesel prices have jumped by 60 percent and petrol by 28 percent in just the past three months, driving up prices of vegetables, construction materials and daily goods. The cost of LPG, the cooking gas popular in Nepali households, has risen by 11.5 percent. Likewise, education inflation has increased to 6-7 percent. Add to this India’s protectionist policies , under which it has imposed a blanket ban on sugar exports to Nepal. Even as all this is happening, Nepal lacks a strong government response.