Imports of agro products jump at an alarming rate

KATHMANDU, Feb 24:

In the absence of extensive programs to boost farm outputs, imports of major agro products shot up alarmingly during the first six months of 2012/13.

Imports of farm products from India - a key supplier -- jumped in the range of 61 percent to 244 percent during the first six months of the current fiscal year compared to the figure of the same period last year. Imports of agricultural products like milled rice, vegetables and fruits shot up sharply during the review period though Nepal has huge potentiality to increase production of such products.

According to Trade and Export Promotion Center (TEPC), total cereal imports to Nepal went up by a whopping 92 percent to Rs 9.6 billion during the review period. Nepal had imported cereals worth Rs 10.31 billion in 2011/12.

Nepal Rastra Bank (NRB), the central monetary authority, stated that imports of rice from India increased by a massive 244 percent to Rs 4.19 billion during the review period. The figure has come at a time when Nepali officials have been claiming that the country is in a comfortable position to fulfill the demands for food.

Despite drop in production of paddy and maize by 11.3 percent and 8.3 percent respectively, the Ministry of Agriculture Development (MoAD) estimated three months ago that Nepal is still in a position to enjoy surplus of 720,000 tons of food grains this year.

Experts say lack of modern technology to boost farm production and weak food distribution system have been affecting food availability in deficit areas.

"We lack effective plans for commercialization of agriculture sector and put in place a proper system to supply food to needy areas. That is why some areas are facing food shortage even though the country is enjoying food surplus,” said Dr Hari Dahal, who holds expertise in food security situation in Nepal, said.

Imports of vegetable from India also increased at an alarming rate of 61 percent to Rs 2.5 billion during the review period. However, country´s vegetable exports to the largest South Asian economy declined by 8 percent to Rs 55 million during the period.

Nepal is highly dependent on imports, especially from India, for onion and lime. Though local production is fast replacing imports, India is supplying more than 90 percent of onions consumed in Nepal.

Similarly, import of livestock from India increased by 275 percent to touch Rs 562 million during the first half of 2012/13. Exports of livestock from Nepal to India during the period increased by 84 percent to Rs 237 million.

Nepal imports live goats and water buffalos from India and exports cows and oxen to the southern neighbor.

Source: Republica