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Market Watch 17

The price of staple food in Nepal is now as high, or higher than, during the peak of the international food crisis in August 2008.

During August and early September monsoon rains reduced road access, and increased transportation costs to many Hill and Mountain markets. Many of these markets have insufficient supply of key commodities and consequently prices have also increased.

Nepal is expected to face an estimated 400,000 mt domestic food grain deficit this year. This shortfall combined with poor crop cultivation in India is expected to increase food prices in Nepal towards the end of 2009 and during the first quarter of 2010.

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