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Kathmandu Sunday August 13, 2000 Kartik 28, 2057.
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Govt eyes Tibet for rice export
Post Report
KATHMANDU, Nov 12 - Following the inability of the
Bangladeshi government to import Nepali rice this year, the government back home is
exploring possibilities of exporting rice to the Chinese autonomous region of Tibet.
Bangladesh had recently expressed its incapacity to import
Nepali rice, much to the frustration of domestic farmers who were banking upon exports to
Bangladesh to provide a better price for their produce. However, the Bangladeshi
government would not restrict any private sector parties from importing rice from Nepal.
"Ever since the Bangladeshi government officially
declined to import Nepali rice, the Department of Commerce started seeking avenues for its
exports. It is exploring the Tibetan market presently," said Krishna Hari Baskota,
Director General of Department of Commerce (DC), talking to The Kathmandu Post.
The government earlier had quantitatively restricted the
export of rice from Nepal following excessive exports to Bangladesh during the past few
years. Just two years ago, Bangladesh had imported 80 thousand tons of Nepali rice to meet
food shortage, due to widespread floods and unfavorable climatic conditions.
The government lifted the restrictions this year with a
view to reviving returns to farmers, following a slump in the price of domestic
agro-products, especially paddy. The main reason for the price drop is flooding imports of
cheap rice from India, which has eroded the market competence of high cost domestic
produce.
Within the last few months alone, the price of paddy has
fallen by over 40 percent, making it impossible for the farmers even to recover their
investment, let alone making profits. The price of paddy on the domestic market has fallen
from over Rs 1050 per quintal last year to below Rs 600 at present.
In addition, complete removal of subsidy on fertilizers and
its partial revocation in irrigation facilities has hit hard upon farmers, who are unable
to compete against cheap Indian rice. Though the government has decided to subsidize
fertilizers again, the decision is yet to be implemented. India continues to subsidize
most agriculture inputs.
With no demand for Nepali rice abroad, as of yet, and both
India and Nepal, due to favorable climatic conditions, expecting a bumper crop this
season, domestic farmers are afraid that prices will plunge further after the new harvest
sets in.
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