KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
Since Nepal ended power cuts, electricity consumption has surged, with usage tripling from 3.72 billion units in 2015/16 to 10.02 billion units in 2023/24.
Residential and industrial use have driven this increase, and nearly all households are now connected to the national grid.
The rise in consumption, fueled by better power supply and more electric appliances, has led Nepal to export more electricity than it imports, achieving a net gain.
Meanwhile, the gold price in Nepal has fallen slightly to Rs 152,300 per tola, and silver has decreased to Rs 1,840 per tola, reflecting market volatility.
Additionally, farmers are awaiting over Rs 2.57 billion in government payments, with food grain yields expected to rise this year.
Post-power cut surge: Nepal’s electricity consumption triples, exports surpass imports
Since the end of power cuts, Nepal has experienced a dramatic rise in electricity consumption, with usage tripling from 3.72 billion units in fiscal year 2015/16 to 10.02 billion units in 2023/24, according to the Nepal Electricity Authority (NEA).
Residential consumption led this increase at 4.31 billion units, followed by 3.69 billion units for industrial use.
The removal of power cuts has also led to nearly universal electrification, with 99% of households now connected, and 97% using the national grid.
NEA Managing Director Kulman Ghising highlighted that increased electricity use is driven by enhanced power supply and growing use of electrical appliances and electric vehicles.
The government has created a master plan to bolster transmission and distribution infrastructure to handle future demand.
Despite a 10% rise in consumption from the previous fiscal year, Nepal faces seasonal challenges, needing to import power during winter when hydropower production drops, though it has reduced the proportion of imported energy and achieved a net gain from electricity exports.
Last fiscal year, Nepal exported 195 million units and imported 190 million units, earning Rs 130 million more from exports than it spent on imports.
Gold price drops, silver falls
In the Nepali precious metals market, the gold price decreased by Rs 100 per tola, settling at Rs 152,300 on Monday, following a recent increase of Rs 100 per tola from Rs 152,400 recorded last Friday, according to the Nepal Gold and Silver Traders Federation.
This fluctuation indicated a volatile market environment, with gold prices experiencing cyclical changes likely influenced by various economic factors, such as shifts in global demand or local market sentiments.
Simultaneously, the price of silver fell by Rs 10 per tola to Rs 1,840 per tola, reflecting a similar pattern of volatility.
These movements in precious metal prices suggested ongoing instability and potential adjustments in response to broader economic trends or supply-demand imbalances.
Farmers await Rs 2.57 billion in government payments; food grain yields projected to rise
Farmers producing milk and sugarcane are still awaiting over Rs 2.57 billion in payments from the government.
The Ministry of Agriculture and Livestock Development (MoALD) reported that Rs 1.27 billion is owed to milk producers and Rs 1.30 billion to sugarcane growers.
Agriculture Minister Ram Nath Adhikari announced that Rs 335.70 million has been paid to milk producers and committed to settling all dues before Dashain.
The minister also stated that the MoALD will soon release names of those misusing agricultural grants.
Despite past plans, the distribution of farmer identity cards remains unfulfilled.
The MoALD’s Farmers Enlisting Program has registered over 1.8 million farmers, aiming to enlist 1.2 million this fiscal year. Additionally, food grain yields, including paddy, corn, and wheat, are projected to increase by 76,770 tons this year, with expected production rising from 10.96 million to 11.04 million tons.
(Prepared by Srija Khanal)
Comment