Nepali industries, consumers set to hit hard after India imposes customs duty on paddy, rice

Published On: September 10, 2022 01:15 PM NPT By: Republica  | @RepublicaNepal


BIRGUNJ, Sept 10: Rice traders in the Bara and Parsa industrial corridor have said that the decision of the Indian government to impose 20 percent customs duty on export of rice and paddy will have a direct impact on the Nepali market. 

Organizing a news conference here on Friday, the Birgunj Chamber of Commerce and Industry (BCCI) said that India has fixed a 20 percent customs tax rate on export of paddy and rice. Prior to this, there was no customs duty imposed on the export of rice and paddy. 

The BCCI said the imposition of 20 percent customs surcharge by India on rice and paddy export from there will hit the industries, consumers and the national economy. 

Central President of Nepal Rice, Oil, Lentil Industries Association Dr Subodh Gupta said India's latest decision is not fair for the industries, traders, consumers and the market in Nepal. Gupta is also the president of Birgunj Chamber of Commerce and Industry. 

Another rice trader Suresh Rungta expressed  concerns that consumers would be hit hard due to the customs duty imposed by India on paddy and rice export. 

Gupta expressed worry that the latest decision by India might lead to a situation that would lead to the closure of the rice mills in Nepal. He also called on the government to address the problem at the earliest. Nepal has been importing rice worth over Rs 8 billion annually from India. 

Nepal imported 550,000 metric tonnes paddy, 520,000 metric tonnes rice and 50,000 metric tonnes rice grits from India last year alone. There are around 2,500 rice industries across the country and half of these are closed. 

Even those rice industries which are operating are not operating in their full capacity due to various reasons. The rice industries in Nepal have been producing 40 percent rice and the rest of the demand is met through the import from India. 


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