Though some suppliers have signed agreement to supply 175,000 quintals of rice to NFC, they have supplied only 57,400 quintals so far. NFC has so far procured rice from Dhangadhi, Bhairahawa, Birgunj, Lahan, Biratnagar and Tulsipur. [break]
Bijay Dhoj Thapa, deputy general manager of NFC, informed myrepublica.com that traders are not interested to sell rice to NFC because they anticipate the price to sharply go up in the coming months due to lower production on the back of late monsoon this year.
Worse still, NFC had to seize deposit of some traders for failing to supply 55,000 quintals of rice as agreed.
"The supplies are ready to lose their deposits rather than supplying rice as per the agreement. That is why we have again called tender for the supply of rice to ensure that we have sufficient stock," said Thapa.
Until last year, traders were ready to supply rice as required by NFC.
NFC sources said traders mainly in Janakpur, Birtamod and Biratnagar had refused to sell rice to the state-owned food supplier.
Due to shortage of rice, some traders sold rice to NFC at the rate which is around 10 to 18 percent higher than last year´s rate.
"Price of rice has already gone up in the range of 10 to 18 percent as compared to last year. But traders aren´t interested to sell rice to NFC, anticipating further hike in prices," he added.
However, suppliers in major cities across the country said they are not in a position to supply rice as demanded by NFC due to supply deficit triggered by decline in paddy production and imposition of ban on rice exports by the Indian government.
Decline in domestic production by about 11 percent as compared to last year has worsened supplies in the market which was already facing supply deficit due to restriction on rice exports by the southern neighbor.
"How can we supply rise as demanded by NFC when we are lowering the operation hours of our rice mill due to shortage of paddy?" wondered a Janakpur-based rice mill owner. He also said the mill owners do not have sufficient rice in stock for the coming days.
NFC has set the target of supplying 110,000 quintals of different varieties of rice such as Sona Mansuli, coarse rice, Jeera Masino and Sawa Mansuli to 23 food deficit districts, mainly the hilly districts in the mid and far-western regions.
prabhakar@myrepublica.com
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