Ministry halts NFC bid to buy extra foodgrains
KATHMANDU, JUN 07 -
The Ministry of Commerce and Supplies (MoCS) has barred Nepal Food Corporation (NFC) from purchasing 17,000 tonnes of rice, which the latter had sought to buy for the national food reserve and the Saarc Food Bank.
According to the NFC, the ministry has asked it not to buy the additional food until its purchase plan is approved by the ministry.
The NFC said it now has 20,000 tonnes of food in reserve, although the MoCS has directed it to keep a reserve of 33,000 tonnes for emergencies.
An MoCS official said the ministry barred the NFC from purchasing the food as the latter tried to buy it despite adequate stock.
Although the NFC has 19,000 metric tonnes of rice provided by Japan, Shah said it cannot be counted as buffer stock. The Japan government has been providing food aid to Nepal for long. This aid is distributed to remote food-deficit districts.
“We sensed irregularities and prevented the NFC from purchasing the food for now,” said the ministry official on condition of anonymity. “The purchase decision has been taken without the approval of the NFC board.”
However, NFC General Manager Hari Narayan Shah said he does not need to take permission from the board as per a circular issued by the Pubic Procurement Monitoring Office (PPMO) in the name of public enterprises.
Reading out the circular issued on January 4 this year over telephone, Shah said the PPMO has clearly barred the NFC board of directors (represented by various ministries) from intervening in the purchase process.
According to him, the NFC requires to maintain a committed quantity of food in its buffer stock at the end of the current fiscal year. “Otherwise, the country will remain unprepared for a food crisis owing to natural calamities and other incidents,” he said.
Shah said the NFC board has already approved its annual plan of purchasing 23,500 metric tonnes of rice this year and approved a budget of Rs 810 million for the purpose.
“On the basis of that board approval, I initiated the process of purchasing 17,000 tonnes of food,” said Shah. He said the NFC will cancel the purchase plan altogether if the ministry asks it in writing to stop purchasing the food this year.
The government keeps buffer stocks of food grains in NFC warehouses across the country. The government has directed the NFC to maintain the stock in Biratnagar, Lahan, Birgunj, Kathmandu, Pokhara, Nepalgunj and Dhangadhi. The government has also told the NFC to maintain stock under the Saarc Food Bank in Birtamod, Biratnagar, Birgunj, Kathandu and Dhangadhi.
Source: The Kathmandu Post
