November 6: Wheat was being sold in the domestic market of Nepal at at Rs 44 per kg before the festival of Dashain. As soon as the festival ended, its price increased by Rs 5 to Rs 49 per kg.

Businessmen say that the prices of wheat flour (gahu), refined wheat flour (maida), semolina (suji) and bran have increased due to the increase in the price of wheat in India and the increase in the price of wheat available in Nepal.

Although the Indian government has approved the export quota of 300, 000 metric tonnes of wheat for Nepal, only 100, 000 tonnes of wheat have arrived so far. Currently, the demand for wheat in India is high, so the price has increased. When the quota was allocated for Nepal, the price of wheat in India was INR 23 per kg, but now it has reached INR 28.

Vice President of the Flour Mill Association Bikas Begwani said that the prices of flour, semolina and bran have increased due to the increase in the price of wheat in India. He said that since the price of wheat for the remaining quota to be imported from India has increased, the price of wheat products will increase further.

According to Begwani, the cost of wheat produced in India reaches Rs 55 per kg when it arrives in Nepal.

In Nepal, the price of wheat has increased by Rs 5 per kg, while that of wheat flour (gahu), refined wheat flour (maida), semolina (suji) and bran have become expensive by Rs 10 per kg. Begwani said that when the price of wheat reaches Rs 55 per kg, the price of wheat flour (gahu), refined wheat flour (maida), semolina (suji) and bran will increase by Rs 10 per kg.

Government-owned Food Corporation of India has increased the price of wheat due to reduced stocks. There is a shortage of wheat even in the Indian market and that the corporation has increased the price so that the farmers can get more money from the crop as there are elections in India next year.

Kumud Dugad, central president of the association, said that the price of wheat has also increased in Bhairahwa, Birgunj and Nepalgunj. He said that the price of wheat, which was Rs 2,900 per quintal before Dashain, rose to Rs 3,200 after Dashain.

Dugad informed New Business Age that the price of all products made from wheat has increased by 15 percent. He said that due to the increase in the price of wheat in India, the price of imported wheat will also increase. He said that 200,000 metric tons of wheat of the remaining quota will arrive from India after Tihar.

Harivansh Rathi, the owner of Gomti Foods, said that since wheat produced in Nepal will be available in the market only from mid-May, there is a need to import wheat from India for another six months. According to him, 40 flour mills and 30 small flour mills in Nepal consume 900,000 metric tons of wheat annually. The country, however, produces only 300,000 metric tons of wheat annually.