KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The local gold market saw a slight decrease in price on Wednesday, with a drop of 800 rupees per tola, reflecting a minor fluctuation in the market.
Meanwhile, the Nepal Rastra Bank’s review of the monetary policy for the second quarter of the fiscal year showed no major changes, although there had been hopes of favorable policies for the stock market.
Following the review, the stock market has experienced a steady rise. On the other hand, the Food Management and Trade Company in Janakpurdham fell short of its rice purchase target, acquiring only 5,346 quintals instead of the expected 32,000 due to higher market prices encouraging farmers to sell elsewhere.
Additionally, the Department of Revenue Investigation filed a case against two individuals for smuggling packaging materials for foreign liquor, evading customs duties, resulting in a fine of Rs 52.1 million.
These developments highlight ongoing challenges in the local economy, with fluctuations in commodity prices and regulatory issues impacting various sectors.
Gold price drops
The price of gold decreased in the local market on Wednesday. Gold dropped by 800 rupees per tola.
While gold was traded at 171,300 rupees per tola on Tuesday, it was traded at 170,500 rupees per tola on Wednesday, according to the Nepal Gold and Silver Dealers Federation.
Monetary Policy review and its potential impact
The Nepal Rastra Bank reviewed the monetary policy for the second quarter of the current fiscal year 2081/082, marking the final review under Governor Dr. Maha Prasad Adhikari’s 5-year term.
While there were no significant changes in the review, there had been anticipation that the governor would introduce policies favoring the stock market, especially with a focus on the 6 million share investors.
Since the review, the stock market has seen a continuous rise starting this week.
Rice purchase falls short of target
The Food Management and Trade Company Limited Provincial Office in Janakpurdham purchased far less rice than its target for the current fiscal year.
The target was 32,000 quintals, but the office managed to purchase only 5,346 quintals.
According to the office, 26,654 quintals less rice was purchased due to farmers opting to sell their produce in the private market, as the market price was higher than the support price set by the government, said Devendra Rai, the office head.
Case filed over illegal liquor packaging
The Department of Revenue Investigation has filed a case against two individuals involved in smuggling packaging materials for foreign liquor into Nepal, bypassing customs duties.
The Butwal-based Revenue Investigation Office filed the case on Tuesday, accusing the two individuals of smuggling caps and other packaging materials from India, used in the packaging of foreign liquor not produced domestically, evading customs duties. The fine imposed amounts to Rs 52.1 million.
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