Nepal imported rice worth Rs 5b from India in 7 months
KATHMANDU, MAR 18 -
Although the banking sector’s investment in the agriculture sector has doubled in the last one and half years, the country is still importing agriculture products from India in high volumes.
In the first seven months of the current fiscal year, rice imports jumped four times compared to the imports in the same period last fiscal year.According to a Nepal Rastra Bank (NRB) report, rice imports from India stood at Rs 5.07 billion in the review period — up from Rs 1.63 billion last year. The country had imported rice worth Rs 4.26 billion in the entire last fiscal year.
“Nepal does not have the competitive edge over India in cereal production as farmers are heavily subsidised in India,” said economist Bishowmbher Pyakuryal. “Nepal has to focus on areas where there is comparative advantage as Nepal is blessed with diverse climatic condition.”
A preliminary summer crops production report unveiled by the Ministry of Agriculture Development shows that production of summer crops (paddy, maize, millet and buckwheat) dropped 9.99 percent in the current fiscal year compared to last year.
Output of paddy, the biggest contributor to the economy from the agriculture sector, dropped 11.3 percent to 4.50 million tonnes in fiscal year 2012-13, according to the ministry.
The country produced 567,746 tonnes less rice than last year’s production due to poor monsoon and shortage of subsidised chemical fertilisers. Paddy production was 5.07 million tonnes in 2011-12 and 4.46 million tonnes in 2010-11. Maize and millet output fell 8.3 percent and 3 percent, respectively, to 1.99 million tonnes and 305,588 tonnes.
Increased supply of rice from India has alarmed officials at the Ministry of Finance. They said they are concerned about rising imports of rice and automobiles, which are contributing to a huge trade deficit.
Not only rice imports, but also the imports of vegetables and fruits surged during the first seven months. Vegetable imports from India surged to Rs 2.84 billion from Rs 1.73 billion year-on-year. Fruit imports surged to Rs 695 million from Rs 450 million over the review period.
The figures have come amid increased banking investment in the agriculture sector. According to the NRB, banking investment in agriculture has doubled to Rs 37 billion at present from Rs 18 billion one and half years ago.
NRB Governor Yubaraj Khatiwada said in Gulmi on Sunday that it is high time for banks to increase their investment in the agriculture sector as insurance companies are ready to address the risk in the sector, cooperatives are working for market management, and consumption of milk, fruits and vegetables products is rising.
Khatiwada said the current level of bank investment in the sector is meagre. “We need to further focus on this sector with efforts to manage and minimise the existing risks.”
Source: The Kathmandu Post
