Nepal imported agro goods worth Rs 79.89b in 2010-11
KATHMANDU, FEB 14 -
Nepal imported raw and processed agro commodities worth Rs 79.89 billion in fiscal year 2010-11, up 24 percent compared to 2009-10, according to statistics published by the Ministry of Agriculture and Cooperatives (MoAC).
Import figures over the last couple of years suggest that the import of agro commodities is gradually increasing in the country. Experts attribute the rising agro import to inadequate supply of raw materials for industries here.
“Domestic production is unable to meet the growing demand for quality food products. As a result, import has jumped notably,” said Ratnakar Adhikari, a trade expert. “Growing demand for differentiated products from increasingly sophisticated consumers could also be seen along with the growth of integrated
supply chains such as departmental stores in the urban areas.”
Vegetable products, prepared foodstuffs, oils and their cleavage products, cereals, edible vegetables, edible fruits and nuts, live animals, maize corn, betelnuts and dairy produce are the country's top ten imported agro commodities.
The ministry stats show of the total imported agro commodities, import of raw and processed vegetables products tops the list. Nepal imported vegetables products worth Rs 26.09 billion in the last fiscal year, an increment of 24 percent compared the previous year. In 2009-10, total vegetable import stood at Rs 21.08 billion.
After vegetables, import of processed foodstuffs such as beverages and spirits amounted to Rs 16.48 billion, against Rs 13.16 billion in 2009-10.
Crude and refined edible oil came third in terms of import value. Nepal imported oil worth Rs 13.88 billion in the last fiscal year, against previous year’s Rs 12.20 billion.
The MoAC statistics shows Argentina is the top soybean oil exporter to Nepal. The country alone exported soybean oil worth Rs 6.50 billion in Nepal in 2010-11.
According to the ministry stats, cereal products are the fourth highest imported commodity last year. The country imported cereals worth Rs 5.03 billion in 2010-11, against Rs 4.19 billion in 2009-10. Cereal products include broken rice, buckwheat, millet, husk rice, barley, wheat, and corn.
The country imported maize corn worth Rs 2.27 billion, against Rs 1.30 billion in 2009-10. India alone exported the commodity worth Rs 2.20 billion to Nepal, followed by Argentina with Rs 647 million.
“Increased import of maize corn for the last couple of years is due to farmers shifting interest to poultry,” Adhikari said, adding that rising investment in poultry has soared maize corn import for cattle feed. According to the government statistics, over Rs 32 billion of investment has been made in the poultry sector.
However, the country saw a significant decline in the import of fruits and nuts. Import of these products slipped to Rs 3.63 billion in 2010-11, against Rs 4.71 billion in 2009-10. A drastic fall in the import of betel nuts contributed largely to the overall drop in the import of fruits and nuts.
Echoing Adhikari, agro expert Tulshi Gautam said Nepalis’ expenditure on imported food and fruits, beverages and confectionary is increasing as a result of their rising income. Likewise, growing rate of food consumption compared to the country’s production is another reason. “Nowadays, all types of foods and fruits are available in the market when you have money,” he added.
Widened road network in apple and orange producing areas is one of the major factors behind the fall in fruit import, as domestic products are gradually replacing imported, Gautam said, adding that seasonal constrains, however, has compelled the country to import a huge amount of fruits. Despite government plans to substitute meat import with boosting domestic production, import of fish, meat, and live animals increased by 42 percent to Rs 2.67 billion. Import of dairy products and bird eggs stood at Rs 925 million, against Rs 895 million in 2009-10.
Interestingly, Nepalis are becoming an avid eater of chocolates and chewing gums. The MoAC stats show chocolate and cocoa preparation products import jumped to Rs 556 million last year, against Rs 458 million in 2009-10. However, chewing gum import dropped marginally by 2 percent to Rs 262 million last year.
With the annual increase in the import of agro products becoming a major concern to the government, Adhikari said the government should focus on promoting local products enhancing the capacity of local industries. “If the government thinks that Nepali industries are in a better position to produce quality foods, incentives and subsidy could be offered to them for their technology upgradation,” Adhikari said.
TOP 10 IMPORTED AGRO COMMODITIES
FISCAL YEAR 2010-11
COMMODITIES Value (in Rs)
Total commodities 79.89 billion
Vegetable products 21.72 billion
Prepared foodstuffs 16.48 billion
Edible oils 13.88 billion
Cereals 5.03 billion
Edible vegetables 4.36 billion
Edible fruits and nuts 3.63 billion
Live animals 2.37 billion
Maize corn 2.27 billion
Betelnuts 2.05 billion
Dairy produce 925 million
Source: Kantipur
