Govt to control illegal inflow of tea

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Kathmandu, Nov 17 - The unchecked flow of cheap Indian tea has become the prime cause for the deteriorating condition of tea industries and tea farmers says Bal Dev Mazgaiya, Minister Agriculture and Cooperatives Minister. He also informed that the government is seriously considering of increasing import tax on tea.

Addressing a press conference organized here today to publicize the newly enforced National Tea Policy Minister Mazgaiya expressed the hope that the newly enforced policy would solve most of the outstanding problems of tea entrepreneurs. He opined that the new policy would play a key role in stimulating the growth and promotion of domestic tea industries.

The government last week finally made public the long-awaited National Tea Policy 2057 with the core objective of safeguarding the interest of domestic tea industries and tea farmers. Entrepreneurs and farmers associated with tea industry had been demanding for a National Tea Policy since years, in the lack of which questions have been often raised regarding government policy in developing tea industry.

Highlighting the different aspect of newly enforced tea policy, Minister Mazgaiya also was hopeful that the implementation of the policy would decrease the current cost of production thereby increasing competitiveness of the Nepali tea in international market.

Mukti Raj Sharma, Executive Director of Nepal Tea and Coffee Development Board said that the new tea policy is a milestone in the development of tea industry in Nepal. He also informed that the policy has aimed to increase tea production to more than 46.1 million Kg within the next ten years, and generate rural employment opportunities for more a hundred and 40 thousand people.

Among other, the newly issued tea policy also aims to invest Rs 2 billion in the coming five years to increase the area of tea cultivation to 40 thousand hectors. Similarly, the new policy allows commercial banks to invest up to eighty percent of the total project cost of tea industry. The policy also clearly states that grace period of five years in Tarai and 7 years in hills would be granted on loans extended for tea cultivation and interest incurred during the grace period would not be capitalized.

Singbad-Rohanpur route best alternative

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KATHMNADU, Nov 17 - A recently conducted study report on possible transit routes for Nepal has revealed that the use of Singbad - Rohanpur broad gauge railway, which connects Bangladesh and India, could be one of the best alternative transit routes to Mongala port of Bangladesh.

The study entitled ‘Transit Transport System in Bangladesh’ was carried out by Federation of Nepalese Chambers of Commerce and Industry (FNCCI) in cooperation with Export Promotion Center, Ministry of Industry, Commerce and Supplies. Making the report public, Mahesh Satyal, Consultant of the study, said that the Singbad - Rohanpur broad gauge railway route is one of suitable available options for Nepal’s easier excess to the sea.

The report also suggests that the government initiate diplomatic dialogue with India and Bangladesh to use the Singbad - Rohanpur broad gauge railway route for incoming and outgoing cargoes. Nepal signed a trade and transit treaty with Bangladesh on 1976, which allowed Nepal to use broad gauge railway connection.

The report says, since the Singbad - Rohanpur railway route is more viable than the existing Birola - Radhikapur railway route for it passes through Raxual, the biggest and busiest bordering Indian City. More than 70 percent of Nepal’s foreign trade is conducted through the city, it could be one of the best routes for export/import trade with the third countries.

If not improved, the Birola - Radhikapur railway would not actually be practicable, as it is quite slow and complicated. The report says that it took six months to deliver the consignment Agriculture Input Corporation while carried through the Birola - Radhikapur railway route.

The report says those currently using the Singbad - Rohanpur broad gauge railway for the transit of goods are quite satisfied since it is most effective and economical route to transport goods between Bangladesh’s Mongala port and Birjung.

The government has been using Bangladeshi ports of Chittagong and Mongala, albeit nominally, in an attempt to minimize its dependence on the over crowded Calcutta port. Beside this, Nepalese businessmen complain about the bureaucratic hassles created by Indian officials.

The report also points out that Nepal can develop better access to the sea if the government connects Kakarvitta, the eastern customs point of Nepal, with Banglabandh through a broad gauge railway.

In order to boost Nepal-Bangladesh trade, the report suggests to prepare a list of possible goods that can be traded between the two countries. It asks to provide to some concession on the existing customs duties to such goods to promote bilateral trade.

Stating that the motor road between Phulbari of India and Banglabandh of Bangladesh and others are also economically and technically feasible for bilateral and multilateral trade, the report suggests to manage tourist buses on the those routes to boost regional tourism.

The existing banking problem is also one of the causes of high transit costs, which to some extent, has shaved off competitiveness of domestic products in the international market. Therefore, the Rastra Bank should provide certain amount of Bangladeshi currency to the exporters engaged in the transit trade through the ports of Bangladesh, states the report.

It also urges the Bangladeshi Government to issue Multiplan visa to the businessmen involved in transit trade through Bangladesh.

Regional trade fairs to be organized

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BUTWAL, Nov 17 - In a joint effort, Ministry of Industry, Commerce and Supplies, Export Promotion Center and Federation of Nepalese Chambers of Commerce and Industry (FNCCI) is organizing "Regional Industrial Trade Fair 2057" in all five development regions this fiscal year.

According to Trade Fair Committee of FNCCI, more than 70 stalls representing a wide range of domestic products would be exhibited in each fair.

Speaking at a press conference, Krishna Tamrakar, President of Trade Fair Committee informed that the first trade fair would be organized in Butwal of Western Development Region from December 1 to 10.

Similarly, Birgung and Nepalgung of Central Development Region and Mid Western Development Region respectively would organize trade fairs on January 5 to 10 and February 26 to 30, 2001 respectively.

Likewise, the fair would be organized in Mahendranagar of Far Western Development Region from February 16 to 21 and Biratnagar, of Eastern Development Region would host the regional Trade Fair on the first week of February, 2001.

Agricultural products, Nepalese herbs, Nepali paper, industrial products, handicrafts and other items are to be exhibited.

Tamrakar said that such fair would be helpful in promoting domestic production by introducing Nepalese goods and services in all major parts of the nation and by identifying exportable goods in order to boost national export to third countries.

Similarly, such fair would help small and medium industries in promoting market, stimulating internal as well as external trade by renewing and strengthening contacts between the industrialists, businessmen and exporters. They also help in building public awareness.

Tamrakar informed that similar types of three other regional trade fairs organized last year were successful in promoting some of the local productions in the national and international markets while many other established their own identity in the local market.

He said that the coffee produced in Gulmi and locally produced honey got exposure in Japan and Korea due to Butwal Trade Fair held last year. Similarly, Hetauda Trade Fair introduced various bamboo products in the international market.

Arjun Man Saiju, President of Butwal Chamber of Commerce and Industry said that all eighteen district chambers of Eastern Development Region would actively participate in the Butwal Trade Fair.