Traders attributed the rise to a ´softened approach´ of Indian customs toward exports of rice and wheat to Nepal for the last few months.[break
Nepal has been mainly importing coarse rice, masino rice, basmati rice, pulses, maize and refined flour from the southern neighbor. Since the peak of global food crisis a couple of years ago, India officially banned exports of non-basmati rice varieties and wheat in an effort to ease domestic supplies.
Data compiled by Trade and Exports Promotion Center (TEPC) shows the total exports of cereal products to Nepal has gone up by 106 percent to touch Rs 2.13 billion. The amount was Rs 1.03 billion during the same period in 2009/10.
According to the Ministry of Agriculture and Co-operatives (MoAC), paddy production increased by 11 percent to 4.46 million tons -- worth around Rs 89 billion -- during the fiscal year 2010/11 compared to previous year. Paddy production was recorded 4.02 million tons during the fiscal year 2009/10.
Similarly, production of other cereal crops like maize and millet hit a new record this year due to rise in productivity and production areas. Maize production increased by 11.45 percent to 2.67 million tons compared to the previous year.
Production of millet also increased to 302,691 tons from last year´s 299,523 tons.
Similarly wheat production also grew by a whopping 16 percent to 1.55 million tons during 2009/10.
Despite more than two-year-long official ban, exports of cereals from India have not been affected as Indian customs officials are maintaining soft policy for outflow to Nepal.
Satish Bohara, joint general secretary of Rice, Oil and Pulse Industries Association, said import amount of cereals has gone up as Indian customs has unofficially relaxed the ban on exports of cereal to Nepal.
"Indian customs has become more liberal for the last few months compared to last year for the cereal export to Nepal which has pushed up the imports volume this year," said Bohara. Increment in import price by around 10-15 percent compared to last year has also jacked up the import volume.
Officials have said given the impressive production of paddy, wheat, maize and millet in the country, the rise in the cereal imports wasn´t justifiable.
"Keeping in view the rise in the production of major cereal crops in our country, we see no reason for cereal imports to go up," said Dr Hari Dahal, spokesperson of the MoAC.
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