Wednesday, April 12, 2006

Prof. Dr. Ram Kumar Dahal, T.U, Nepal

In post 1995 days, Nepal is facing a complex socio- cultural, economic and political situation and the weakening security conditions, growing killings and violation of HRs (both by the government and by the Maoists), doubt and conflict situation in different parts of the country, among other things, have caused different challenges to government, I/NGOs development partners and market mechanisms to continue their development activities and supply of basic wage goods outside the capital city. Moreover, the continuous destruction of earlier built economic infrastructures (particularly roads and bridges) has created further challenges in the field of supply of wage goods to remote areas (e.g. food stuffs have to be transported through air route even though there is land transport system.) As large part of the government money has been diverted to security and law and order (e.g. purchasing arms and ammunitions and recruiting security officials to combat the terrorists) from social service/ welfare, the supply of wage goods, particularly to the remote areas has suffered much. Moreover, the looting of these wage goods by the terrorists before they reach to the real target groups has hampered the interests of the poorest, marginalized and vulnerable groups in the Himalayan and Hill districts. The delivery of goods and services to remotest parts of Nepal particularly in post 1995days have thus adversely affected. In spite of these limitations also, the democratically elected governments in post 1990 periods had attempted to supply wage goods (e.g. food stuffs, kerosene, and salt) to the poorest, marginalized and vulnerable groups in the Himalayan and Hill districts of Nepal.

As limited researches have been made in the field of supply of wage goods and service delivery (by the government to the people) in Nepal, no extensive information are available. .On the basis of the limited information available on the subject, it is found that the performance level of those goods and service delivery institutions (both govt. corporations and others) is very low .One of the recent studies conducted in this area concludes: “the extensive network of government field offices functions with very little efficiency… Most of the services provided (by them) are poor in quality, irregular and not responsive to the people’s needs” (Quoted from Sharma, 1991:58) This situation exist in all sectors of Nepalese life and the poorest, marginalized, the vulnerable and the wage groups in the remote Himalayan and Hill districts have suffered much out of this irregular, poor and unresponsive performances of these supply agencies including government corporations. In the health sector, many government hospitals, health posts, health centers in the remote districts are without doctors , physical equipments and the medicines and those groups mentioned above and the rural poor living below poverty line have acutely suffered and due to low income capacity failed to get treatment and purchase medicines from private sector. Moreover ,the government supply of wage goods and delivery of service have lagged far behind the expectation of the rural poor in many service sectors including in the supply of safe drinking water, agricultural extension services ,micro credit scheme and in general , the supply of wage goods to remote areas in particular. (Sharma 1998:58) The concerned corporation and agencies have failed to provide agricultural inputs, fertilizers, improved seeds and other agricultural equipments needed to the rural peasants creating them a number of problems in cultivating and improving agricultural productivity. Under the current practice, as there is no system of supply of clothes and medicines through govt. corporations to the wage groups in RAs, they have problems in these sectors and the Nepalese welfare state has necessarily to fulfill its responsibilities towards these groups by providing them adequate clothes (e.g. may be cheap goods imported from Khasa of Tibetan Region of China) and medicines (e.g. strengthening Royal Drugs like institutions and encouraging Ayurvedic medicines and hospitals to provide medical facilities and medical insurance to those groups of people in the remote areas).As this research focuses mainly on the supply of food stuffs, kerosene and salt to the RAs, these items would be separately dealt here.

FOOD SUPPLIES TO REMOTE AREAS

While dealing with the supply of wage goods to the remote districts by the democratically elected governments in post 1990 Nepal, it would be appropriate to deal with some of the key issues including the food supply policies of the government; the present structures, processes, and systems of supply (e.g. purchase, transport, storage and distribution of such food grains) to the rural poor in the RAs, major challenges in this sector and the remedial measures to correct, or meet those challenges. More important to this, it is essential to analyze here whether the real needy or targeted groups have practically received those goods in time, in needed quality and quantity, and in a simplified manner or not.

In order to provide food grains to the poorest, marginalized and, vulnerable groups in the food deficit districts in the northern parts of the country, HMG has adopted a food policy of supplying food grains in the subsidized rates bearing the total transportation costs to the 30 districts. On the basis of information provided to this researcher by the NFC and the Ministry of Industry, Commerce and Supplies (MoICS), during the FY 2059/60, to transport the accepted quota of 64050 quintal, HMG has granted Rs.185500000; in FY 2060/61 to supply 64400 quintal, the amount of Rs188900000 and in FY 2061/62, to transport the accepted quota of 65200, HMG has granted Rs.211275000 (NFC, 2005; and MoICS, 2005).Besides these regular subsidies to 30 districts, HMG, in order to provide food subsidies to the five remote districts of Karnali zone ,had provided Rs.138507200 to transport the accepted quota of 32300 quintal rice in the FY2059/60; RS.142896000 TO TRANSPORT the accepted quota of 33350 quintal in the FY 2060/61;and Rs.157814000to transport the accepted quota of 33400quintol in FY 2061/62. (NFC, 2005; and MoICS, 2005).

Under current system, the Nepal Food Corporation (NFC) is the only authorized agency (established on Dec.2, 1974 /Marg 17, 2031) dealing with the purchase, collection, supply/transportation, storage and distribution of food stuffs in the food deficit area from food surplus areas. The NFC, with organizational networks in 98 places with 598 officials and with 97620 metric ton total godown/storage capacity, is supplying food stuffs to 30 food deficit Himalayan and Mountain districts of the country .During FY 2061/62, out of total quota of 6425 metric ton food grains, 6463metic tons were transported and 6034 metric tons were sold to the needy people on the recommendation Food Distribution Committee formed under the chairperson of the CDO. As the transportation cost is borne by the government, the NFC is to sell the food grains only in the purchase price. Currently, due to security reasons, the NFC distributes the food grains from its own godowns at the district headquarters to the consumers and most of its offices outside the district headquarters had either been closed or become inactive. The NFC, besides this regular program, also received food assistance from foreign countries and under the current FY is to sell 8200 metric tones rice received from Japan. The NFC is also planning to have emergency food stock for special purposes. Currently, the NFC is involved in the purchase and sell of various varieties of rice (e.g. Basmati. Aruwa , Sona motta, Basmati and Aruwa mota) ,Mansuli, pulse, dal).With the extension of transportation networks in different parts of the Hill districts (particularly linking district headquarters through roads),the NFC has reduced its activities in 30 remote districts from previously conducted activities in 55 Himalayan and mountain districts.Besides these regular supplies, the NFC also supplied food grains to wage groups and the rural poor under the food for work program which has remained particularly useful to wage earners and rural poor in the remote Himalayan and Hill districts, whose purchasing power is very low. Currently the program is conducted in 25 districts.

In this context, it is appropriate to analyze whether the rural poor and the wage groups have been really benefited from these subsidies which is really targeted to them or not. Evidently, as these food grains have to be purchased at subsidies rate, the rural poor having no purchasing power cannot buy them which are distributed in NFC godown in district headquarter on the recommendation of District Food Committee headed by the CDO. As the NFC, due to security reasons, has concentrated its business only in the headquarters of the districts, it often becomes difficult and expensive too for the rural poor ,marginalized and vulnerable groups, having low purchasing power (particularly in the five districts of Karnali and other Himalayan districts) to go to district headquarters. As the rural poor and the marginalized groups have no access to power (at district headquarters) and cannot influence the members of the District Food Management Committee (DFMC) and even cannot reach the district headquarter during the time of distribution of food grains, they cannot easily receive it .Moreover, as the quota is very limited or as the food grains are not timely transported, the rural poor have to travel many times to get 20/25 kg of rice from the NFC or many times even have to return empty handed. A number of corrupt and malpractices existed in the past in the field of purchase, storage, transport and distribution or in the overall supply of food grains to the remotest parts which, in general, have challenged the interests, welfare and wellbeing of the economically weakest sections of the people and the overall rights of the poorest, marginalized and the vulnerable groups to have adequate food and right to life as mentioned in the International Covenant on Economic Social and Cultural Rights,1966 of which Nepal is a party. In the past , some of the corrupt authorities were found involved in illegal selling of the food grains on the way before reaching to the real destination bringing the contractors into their confidence (e.g. A hypothetical example, the food quota allotted to Jumla and has to be transported there through air is sold in Nepalgunj and the air transportation cost is illegally shared by the concerned authorities and the contractor) which directly affects the distribution of food grains to rural poor often challenging their right to have adequate food. As there are two rates of food grains in the markets of the districts (one rate for the subsidized food grains to be sold by the NFC as the only authorized govt. agency and the another one for the non subsidized food grains whose prices are determined by competitive market forces), the authorities/vested interests are often found involved in personal secret dealings with black marketers and illegal profit earners often selling the subsidized rice in the rural markets and making illegal money out of that. Moreover, the favoritism and partiality shown by the vested interests while distributing the subsidized food grains among the rural poor in the past has even challenged their right to have adequate food and their right to life.

According to the government policies and established practices, the Terai-based main offices of NFC-- Birtamod, Biratnagar, Lahan (siraha), Janakpur, Nepalgang, Dhangadhi, Mahendranagar ,and Bhairahawa )purchase rice of various categories (e.g. Aruwa, Sona motta, Basmati and Aruwa mota)at local markets at cheap rates ;stores them in their own godowns and supply to deficit areas.

Out of the total godown capacity of NFC 97620 in metric tones throughout the country,31480 metric tone capacity exists in eastern region,33150 in central region ,8150 in western region,13160 in mid western region and 11680 in far western region(NFC,2005)