NFC to pay less for paddy this year

KATHMANDU, Dec 10: Thanks to a bumper harvest this year, state-owned Nepal Food Corporation (NFC) has offered a lower price for paddy.



Paddy output touched a new high of 5.07 million tons this year, up 13.7 percent, making the market glut with paddy. NFC procurement price for paddy is lower by Rs 100 to Rs 150 per quintal compared to last year. [break]



However, due to absence of a strong procurement network, NFC is facing a tough competition from private traders who are offering better prices and even visiting remote villages to procure as much paddy as they can.



Rajendra Baskota, acting general manager of NFC, said NFC has offered Rs 1,500 per quintal in Rajapur of Bardia, Rs 1,510 in Kailali and Rs 1,495 in Mahendra Nagar for coarse paddy (mota). Similarly, average price for mansuli has been set at Rs 1,650 per quintal.



“We have set the price of paddy lower by Rs 100 to Rs 150 per quintal compared to last year due to a robust production this year. We have reports that Indian rice is also making its presence in the Nepali market,” said Baskota.



In line with the decision by district paddy price fixation committee led by chief district officers, NFC set the price which differs from district to district. NFC, which is currently procuring paddy in Rajapur of Bardia, Kailali and Kanchanpur, is planning to collect paddy from Dhanusha in the second week of February.



Out of the total target to buy 75,000 quintals of paddy across the country, NFC is planning to buy 5,000 quintals each from Rajapur and Mahendra Nagar and 20,000 quintal from Rajapur.



“As we are facing difficulty in procuring the paddy as planned due to penetration of traders who are offering better prices, we are also planning to mobilize our teams and set up depots in paddy pockets such as Rajapur to meet the target,” said Baskota.



NFC has been distributing rice to 23 food-deficit districts as well as to the normal markets in its bid to intervene in the market, which is still dominated by private players.



Out of the total target of supplying 150,000 quintals of rice through its network, NFC has already distributed over 80,000 quintals so far.

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