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Despite surplus, food grain import jumps 60%

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KATHMANDU, July 4: At a time when the government is preparing to lift the four year ban on export of rice citing record high food surplus, import of cereals rose by 60 percent to Rs 5.86 billion during the first 10 months of the current fiscal year.



Official data shows, total import of cereals was valued at Rs 5.03 billion during the fiscal year 2010/11. At the height of the food scarcity in 2008, Nepal had imposed a ban on rice export reciprocating India which also restricted export of non-basmati rice to ease domestic supplies.[break]



Following the suggestion from the Ministry of Agriculture Development (MoAD), the Ministry of Commerce and Supplies is planning to give permission to traders to export 50,000 tons rice to China through Tatopani and Rasuwa -- two major customs points in the northern part of the country.



The MoAD had given such recommendation after the country posted record high surplus of 886,000 tons for the current fiscal year following bumper harvest of cereals with favorable weather.



Mountain and hill districts that faced 13,000 tons and 50, 153 tons of food deficits respectively last year reported a surplus of 15,774 tons and 92,900 tons respectively this year.



Total requirement of cereals for around 27 million people is estimated at 5.15 million tons annually.



Officials of MoAD said the record cereal productions and the subsequent surplus would mean net consumable quantity is as high as 6.03 million tons after deducting post harvest loss, wastage, use for feeding animals and seeds purposes from the total gross production.



Satish Kumar Bohara, the general secretary of the Association of Nepalese Rice, Oil and Pulse Industries said imports of cereal grains jumped significantly with the lifting of ban on export of rice by the southern neighbor from February 23.



"During the ban period, rice would enter Nepal through clandestine routes along the porous borders and such with no record of imports. With the removal of the ban, all imports are recorded at the customs so import volume can be seen higher," said Bohora.



He also said imports of some popular rice varieties such as jeera masino, sarbati, basmati continues despite food surplus.



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