The import data that the central bank released recently shows Nepal imported rice worth Rs 1.14 billon during the first two months of 2012/13, up from Rs 120 million in the same period last year. [break]
India is the largest supplier of rice to Nepal.
The Ministry of Agriculture Development had, a few months ago, announced that the country has recorded food surplus of 880,000 tons in 2011/12. This was expected to lower food imports.
“The latest import data has surprised us,” Narayan Bidari, director general of Department of Commerce and Supply Management (DoCSM), told Republica.
Officials and traders attributed such disproportionate rise in imports to recent lifting of ban on export of non-basmati rice by India after a gap of more than three years.
“Rice import rose mainly because traders are presently feeling comfortable to import rice from official channel from India,” Satish Bohra, deputy general secretary of Association of Nepal Rice, oil and Pulse Industries, said.
During the 2008 food crisis in 2008, India had imposed ban on export of rice in a bid to ease the internal supply of foods.
“The present import surge shows lifting of ban by India prompted traders to switch to official trade," said an official.
Traders like Bohra attributed the rise in imports to increase in prices of rice itself. "The price of rice has increased by around 20 percent this year. It also jacked up the import figure (in monetary terms)," said Bohra.
Some of the traders and officials suspect that the rise in import could be due to recent decision of the government to open rice exports to China. "It is difficult to say for sure. But we cannot rule out its possibility," said the official.
Keeping in view food surplus and growing demand for rice in Tibet, the government in the last fiscal year had allowed traders to export 10,000 tons of rice to China through Tatopani and Rasuwagadhi customs points.
Following the decision, DoCSM in August granted permission to 65 firms to export rice to the northern neighbor on condition that they complete the export process within six months of issuance of export licenses.
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