Chicken, egg prices rise in Nepal amid accusations of market manipulation

NEPAL – The cost of chicken and eggs in Nepal is increasing sharply, with poultry dealers attributing the surge to high temperatures and a dip in production.

However, consumer rights groups are rejecting this claim, alleging that traders are fixing prices through coordinated efforts.

Data from the Poultry Market Management Association shows the wholesale price of chicken has reached around US$2.93 (रू390) per kilogram, with retailers in different regions selling it for between US$3.08 and US$3.38 (रू410–रू450).

Just weeks ago, chicken was priced at about US$2.85 (रू380) per kilogram, indicating a noticeable jump in a short period.

Association president Junga Bahadur BC says the increase stems from a sharp fall in production, particularly in the Tarai region, where he claims extreme heat has slashed output by up to 50%.

Despite this, traders acknowledge that overall supply volumes have remained steady, and consumer demand has shown no signs of decline.

In Kathmandu Valley alone, daily chicken meat consumption reportedly stands at around 500 tonnes, demonstrating the sector’s economic scale.

Egg Prices Also Climb

Similar trends are unfolding in the egg market, where prices are climbing following earlier declines.

According to Nepal Layers Poultry Association president Binod Pokharel, the production cost for each egg is now around US$0.12 (रू16.56), or about US$3.72 (रू496) per crate.

Although crate prices had dropped as low as US$2.70 to US$2.78 (रू360–रू370), they have since surged to between US$3.45 and US$3.75 (रू460–रू500), depending on the location.

Pokharel says even with the current prices, poultry farmers are struggling to break even, citing heat-induced declines in laying rates and losses that have forced many to sell off their flocks.

Still, he adds that retail prices for consumers remain stable at approximately US$0.15 (रू20) per egg, while traders purchase them from farmers at just US$0.09 (रू12) apiece.

While poultry leaders point to seasonal shifts, consumer advocates argue the explanation doesn’t hold up under scrutiny.

Consumer Rights Investigation Forum president Madhav Timalsina says there has been no significant spike in heat or input costs to justify the price hikes.

He accuses trader groups of manipulating supply and engaging in cartel-like practices to push prices higher.

Timalsina says prices have jumped by about US$1.13 (रू150) per kilogram for chicken and US$0.75 (रू100) per crate for eggs in less than a month, calling it a deliberate effort to control the market.

Under Nepali law, businesses are barred from setting prices unilaterally, but Timalsina says this regulation is routinely ignored.

He faults the Competitive Market Protection Board for failing to act, saying its inaction has emboldened traders to continue manipulating prices.

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