KATHMANDU: Economic Digest offers a concise yet comprehensive overview of significant business happenings in Nepal, presented in easily digestible summaries.
The developments highlight the government’s ongoing efforts to balance economic stability, energy security, and agricultural support while addressing governance challenges at local levels. Policies such as the proposed minimum support price for wheat and the ethanol blending mandate reflect attempts to protect farmers and reduce reliance on imported fuels, while the negotiated electricity tariff with India ensures continued power supply during the dry season.
At the same time, authorities are tightening market oversight to prevent fuel hoarding and improve food safety, indicating concerns over consumer protection and market manipulation. However, the reports also reveal structural challenges, including stalled local governance in Kamala Municipality, climate-related agricultural losses in Jhapa, and the need for stronger infrastructure and service delivery despite ongoing progress in road, bridge, and hydropower projects.
Overall, the updates portray a mixed picture of policy initiatives and development progress alongside persistent administrative and environmental vulnerabilities.
Agriculture Ministry recommends minimum support price for wheat
The Ministry of Agriculture and Livestock Development has proposed a new minimum support price for wheat for the current fiscal year and submitted the recommendation to the Ministry of Industry, Commerce and Supplies. Department of Agriculture Director General Prakash Kumar Sanjel said the proposal was based on studies conducted in 10 districts examining production costs, inflation and market conditions. In fiscal year 2024/25, the minimum price was set at Rs 3,867 per quintal, an increase from Rs 3,650 the previous year. Information Officer Mahananda Joshi said the official price will be announced after Cabinet approval, and procurement will be carried out through the Food Management and Trading Company to ensure farmers receive fair compensation.
Kathmandu metropolis steps up monitoring against LPG and fuel hoarding
Kathmandu Metropolitan City has strengthened monitoring activities to curb artificial shortages and illegal trading of LPG and petroleum products. Administration Department Chief Mahesh Kafle warned that traders falsely claiming stock shortages to raise prices will face legal action. Nepal Oil Corporation has set the LPG price at Rs 1,910 per cylinder. Residents can report irregularities through hotlines 1180 or 9851356509. Gas Dealers Federation Nepal President Gyaneshwar Aryal confirmed that imports from India remain steady. Monitoring teams are also inspecting petrol pumps after complaints that some stations were withholding fuel despite having adequate supplies.
Govt mandates up to 10 percent ethanol blending in petrol
The government has published the Ethanol Blending in Petrol Order 2026 in the official Gazette, requiring petrol to contain up to 10 percent ethanol. The policy aims to reduce dependence on imported energy while encouraging domestic production using raw materials such as molasses, crop residue, and agricultural waste. Under the order, Nepal Oil Corporation (NOC) will procure ethanol solely from local industries at prices set annually by a committee headed by the secretary of the Ministry of Industry. To safeguard food security, the regulation bans the use of grains suitable for human consumption in fuel production. A technical committee including representatives from the Ministry of Finance and the Nepal Academy of Science and Technology (NAST) will recommend tax incentives and subsidies for farmers and industries participating in the initiative.
Nepal and India finalize modest electricity tariff increase for 2026
The 17th meeting of the Nepal–India Power Exchange Committee (PEC) held in Pokhara has agreed on a new electricity tariff for 2026, approving a 1.5 percent increase. Nepal’s delegation was led by Nepal Electricity Authority Executive Director Hitendra Dev Shakya, while India was represented by Vijay Kumar Singh of the Central Electricity Authority. Under the new arrangement, electricity imported through 132 kV lines will cost INR 8.22 (Rs 13.15), through 33 kV lines INR 8.91 (Rs 14.25), and through 11 kV lines INR 9.55 (Rs 15.28). India had initially proposed a 5.5 percent rise due to higher production costs, but Nepal negotiated the increase down by citing prevailing market indicators. The agreement secures Nepal’s ability to import up to 350 megawatts of power during the dry season.
Kathmandu metropolis intensifies food safety inspections
Kathmandu Metropolitan City has expanded food safety inspections in school and hospital canteens to safeguard public health. Food technologist Bharati Adhikari said joint teams from the metropolis and the Department of Food Technology and Quality Control have inspected canteens at institutions including Pashupati Mitra Secondary School, KMC Hospital and Bharosa Hospital. Inspectors identified several hygiene issues, such as poor waste management and improper storage of cooked food. Authorities also destroyed unsafe food items on site and instructed operators to improve kitchen infrastructure and maintain safe cooking oil standards.
Ilam tea gardens begin premium first flush harvest
Tea estates in Ilam have started harvesting the season’s first flush, widely regarded as the highest quality and most profitable picking period. Entrepreneur Jeevan Pandey said the early harvest represents the main source of income for many farmers in the region. In the Soyak tea garden alone, around 250 kilograms were collected during the initial harvest. Industry representative Sharad Subba said prices for green tea leaves range from Rs 65 to Rs 1,500 per kilogram depending on quality. Chief Customs Officer Shivalal Neupane reported that Nepal exported more than 8.6 million kilograms of tea during the current fiscal year, generating Rs 2.321 billion in foreign currency from markets including Germany, the United States and Russia.
Budget dispute stalls development activities in Kamala municipality
Development work and public services in Kamala Municipality of Dhanusha have been disrupted for eight months due to disagreements among elected representatives over the municipal budget. While other local units in the district have already approved their budgets, Kamala Municipality has yet to finalize its plan, leaving more than 9,500 people without social security payments. Teachers from several schools have also launched protests after not receiving salaries for eight months, affecting around 7,000 students. Mayor Bisheshwar Yadav has called a meeting on Sunday to set the date for the municipal assembly, while Deputy Mayor Shila Devi Mandal blamed the delay on the mayor’s failure to convene the assembly on time.
Chitwan administration introduces priority system for LPG distribution
The District Administration Office in Chitwan has launched a new system to make LPG distribution more transparent amid supply concerns. According to a notice issued by Assistant Chief District Officer Chiranjivi Sharma, priority will be given to citizens above 75 years of age, persons with disabilities and students living in rented rooms. Individuals from these groups can report supply issues through the toll-free number 1660-5652001. Gas industries and distributors have been instructed to keep daily records of stock and sales and submit them to the administration. Authorities also encouraged consumers to use electric stoves where possible and warned of strict legal action against businesses involved in hoarding or black marketing.
Windstorm inflicts heavy agricultural damage in Jhapa
A powerful windstorm accompanied by heavy rain between Thursday night and Friday morning caused significant damage to farms and businesses in Jhapa district. In Jhapa Rural Municipality-7, about 3,200 banana plants were destroyed, resulting in estimated losses of Rs 1.6 million. A poultry farm in Haldibari-2 lost 2,000 broiler chicks and sustained structural damage worth around Rs 700,000. Another poultry and fishery farm reported losses exceeding Rs 300,000. Mata Pathibhara Plywood Industries in Mechinagar-15 also suffered damage worth Rs 8.7 million after rainfall spoiled veneer stock stored in an uncovered warehouse. Police said assessment of the total damage is ongoing.
Jaimini municipality reports 40 percent financial progress
Jaimini Municipality held its second quarterly public hearing in Jaidi, reporting 40 percent financial progress for the current fiscal year. Officials said the municipality has collected Rs 6.6 million in internal revenue so far. Of the 418 planned development projects, 367 have already been contracted and are under implementation. The municipality also highlighted its “Nagar ki Chhori” program, under which 24 beneficiaries are receiving payments of Rs 2,500 each. Residents at the hearing raised concerns about wildlife damaging crops and requested improved access to seeds and fertilizers. Officials pledged continued support through the Agriculture Ambulance program to help farmers transport and sell produce.
NEA carries out maintenance-related power cuts in Kathmandu
The Nepal Electricity Authority conducted scheduled electricity outages in parts of Kathmandu on Saturday to carry out infrastructure maintenance. Technicians from the Baneshwor Distribution Center repaired 11 kV lines and replaced aging poles under the Gothatar and Battisputali feeders. Power supply was interrupted in Pepsicola and Town Planning areas between 11:00 am and 1:30 pm, while Mid-Baneshwor, Old Baneshwor and Battisputali experienced outages from 2:00 pm to 4:00 pm. The authority apologized for the inconvenience and said the work was necessary to maintain stable power supply.
Madi river bridge project reaches 77 percent completion
Construction of the four-lane bridge over the Madi River in Damauli has achieved 77 percent physical progress. According to Bishnu Prasad Pandey, information officer of the Muglin-Pokhara Road Project (Eastern Section), foundation work has been completed and engineers are now finalizing the bridge’s arc structure. The 315-meter-long bridge, which will have six spans, is the country’s first to use a 23-meter-wide monolithic design. The project, contracted to Annak ZIST JV for Rs 1.21 billion including VAT, has a revised completion deadline of July 3. Around 150 workers are currently deployed to accelerate construction.
Jamune–Pokhara road expansion reaches 71 percent completion
The western section of the Muglin–Pokhara road expansion project has achieved 71 percent physical progress. Engineer Sahanshila Kayasth said nearly the entire 39-kilometer stretch from Jamune to Prithvi Chowk has been blacktopped, with only 350 meters remaining. Construction of the four-lane signature bridge over the Seti River has also reached 60 percent progress. The bridge is being built by Rasuwa Construction for Rs 1.07 billion and is currently in the superstructure phase. The overall road project, valued at Rs 7.404 billion and funded through an Asian Development Bank loan, is being implemented by Chinese contractor Anhui Kaiyuan Highway and Bridge Construction and is expected to be completed in 2026.
Upper Marsyangdi ‘A’ hydropower project begins 45-day maintenance
The 50-megawatt Upper Marsyangdi ‘A’ Hydropower Project in Lamjung has started a 45-day maintenance operation. A team of Chinese technicians is overseeing the servicing of the plant’s two 25-MW Francis turbines, including the replacement of worn components in one unit. During the maintenance period, only one turbine will remain operational, temporarily reducing electricity output. Since beginning commercial production in 2017, the project—90 percent owned by Sinohydro and 10 percent by Sagarmatha Hydropower—has been a key contributor to the national grid. The annual maintenance aims to repair damage caused by sediment carried by the river during the monsoon season.
Dhulikhel–Khawa road to close nightly for resurfacing work
A section of the Arniko Highway between Dhulikhel and Khawa in Kavre will be closed at night for two weeks from March 21 to April 3 to allow resurfacing work. According to Senior Divisional Engineer Sunam Yogesh of the Bhaktapur Road Division Office, buses and heavy vehicles will be restricted from 6:00 pm to 5:00 am, while cargo vehicles such as trucks and tippers will be banned throughout the day. The four-kilometer project involves laying a 20-centimeter cement-mixed base followed by two layers of blacktop. The Rs 201.9 million project aims to improve road conditions and reduce delays along the route leading to the Tatopani border.
Forest office provides temporary employment to 100,000 workers
The Division Forest Office in Nawalparasi (Bardaghat Susta Paschim) has provided temporary jobs to about 100,000 workers during the current fiscal year. According to Office Chief Raju Chhetri, laborers were engaged in activities across 31 community forests, including timber harvesting, transportation, fencing and wildfire prevention. Workers also assisted with weeding and general forest management tasks. Daily wages ranged from Rs 650 to Rs 1,000 depending on the technical nature of the work. The initiative aims to support local livelihoods while strengthening sustainable forest management through community participation.
Comment