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High food prices remain a significant concern for Nepal. The most recent year-on-year food price inflation figure provided by the Nepal Rastra Bank in November was over 16 percent.
The price of rice continued to be at the same or higher level even after the recent crop harvest; the prices in most Terai markets are higher by 10 to 40% compared to the same time last year.
Poor summer harvests domestically and across much of India are a significant factor keeping prices in Nepal high. However, losses in India are not as bad as initially expected and it is likely that the country produced a surplus summer crop. In early January a joint MoAC and WFP mission will confirm loss estimates in Nepal.