Impact of Inflation and Middlemen in the Market: What Is the Status of the Market Level Determination Committee?

The conflict in West Asia has plunged the global economy into uncertainty, resulting in fuel price hikes and supply issues in Nepal. Within Nepal’s domestic market, middlemen have artificially driven up inflation and increased price volatility, placing consumers under dual pressure. The Department of Commerce has formed a committee to establish market level determinations and pricing standards and is preparing to submit the final report to the ministry.

The escalating conflict and tensions in West Asia—the center of global politics—have intensified economic uncertainty worldwide. Disruptions at major oil production centers and key trade routes have caused delays and price surges in international fuel markets, directly impacting import-dependent countries like Nepal. This situation has inflicted a double burden on consumers.

Data released by the Department of Commerce, Supply and Consumer Protection reveals that inflation posed significant challenges for Nepali consumers during the month of Chaitra. According to the report, the highest price increases were recorded in the vegetable market. Based on price data from Kalimati Fruit and Vegetable Market, prices of certain vegetables surged by more than 300 percent.

The root cause of inflation lies in weak regulation and the unresolved issue of ‘market level determination.’ Although the government has highlighted the problem of market level determination for years, the proposed plans remain confined to paper. Consumer rights activists have accused the government committee formed to address irregularities and dismantle middlemen networks in the market of failing to convene a meeting for the past 8 to 9 months.