Cereal & Pulses Prices Surge Over 9%: Impact on Household Budgets in Nepa

Nepali households are facing renewed pressure on their monthly expenses as the cost of cereals and pulses continues to rise sharply. In the first month of FY 2025/26, cereal grains and their products recorded a 9.15% increase compared to three years ago, while pulses and legumes surged by 12.09% in the same period. Even when compared to last year, cereals dipped only slightly (-0.87%) but pulses still showed a marginal rise, keeping food bills elevated. These two staples form a significant share of household diets, meaning any persistent increase directly affects family consumption patterns.

The rise in cereals and pulses is particularly concerning because these are core staples for both rural and urban households. Unlike vegetables or meat, which can fluctuate with seasonal supply, cereals and pulses represent the structural foundation of food consumption. For lower and middle-income families, who spend a higher share of income on food, this inflation is felt most heavily. The upward trend is also tied to broader issues such as import dependency, supply chain bottlenecks, and rising input costs for farmers.

While other food categories such as vegetables (-18.56%), meat and fish (-2.41%), and spices (-4.81%) saw declines, the rise in cereals and pulses offsets much of this relief. This imbalance suggests that even when short-term food items get cheaper, long-term essential staples remain expensive, preventing households from feeling any real reduction in living costs.