NFC fails to supply additional food demand

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KATHMANDU, June 26 ; Plagued by financial constraint, Nepal Food Corporation (NFC), the state-owed food distribution agency, has failed to meet the additional food demand of few food-crunch districts. The NFC, however, has said that it has recently decided to supply some 2,143 quintals of foodstuff, which comes only 4.32 per cent of total additional demand by over a dozen food shortage districts of the country.

"Despite limited budget, the corporation decided to provide additional food to those food-crunch districts that came under our priority zone," said Prabhat Chandra Pandey, Chief of the Department of Procurement and Sales, NFC. The Corporation was asked to provide additional foodstuff by over a dozen of food-shortage districts that include all the five districts of Karnali zone, most vulnerable region to famine.

During early May this year, 17 remote districts of the country had demanded the corporation for another 49,500 quintals of foodstuff and had expressed fear that they might face disastrous spell of food-shortage if not supplied immediately. Most of the districts demanding surplus foodstuff were from western parts of the country. However, the latest decision to distribute foodstuffs by the NFC only covers half of the total food demand of the districts.

"Considering the fact that western region is in more difficulty than the eastern, the corporation has decided to give priority to western parts in the distribution of additional food," added Pandey. The latest decision of NFC will be allowing five districts of western region with additional foodstuffs and only three districts of eastern region.

Out of new quota of additional foodstuffs, while Mugu, Humla and Jumla will be getting 373 quintals 245 and 300 quintals of foodstuff respectively, Dailekh and Bajhang will receive 240 and 285 quintals respectively. Okhaldhunga, Bhojpur and Khotang of eastern region will be getting 350, 150 and 200 quintals of foodstuffs respectively.

But even Pandey concedes that the total of 2,147 quintals of additional foodstuff that the corporation has decided to distribute will not be enough for food shortage districts.

"And unfortunately we cannot go beyond this at the moment as we are running out of fund," said Pandey.

The NFC, which faces budget crunch, underwent further crisis when the government slashed its subsidy by almost Rs 40 million at the start of this fiscal year, thereby limiting it to Rs 180 million. "And to fulfil additional demand of these districts, the corporation, at present requires at least another Rs 130.50 million," added Pandey.

According to a recent internal study carried out by the NFC, Mugu district has been ranked as the most vulnerable among the 17 districts that would face food insecurity if immediate distribution were not carried out, said another NFC official. Mugu, which faced food shortage last year, had asked NFC to allocate at least 7,100 quintals of foodstuff by the end of May to prevent risk of food insecurity.

Besides western parts of the country, a few districts of the eastern region including Khotang, Bhojpur and Sankhuwasabha among others have also demanded additional foodstuff with the NFC.

"Unlike last year, more districts of the eastern region this time have asked for additional foodstuff as cold wave early this year badly affected food production of the region," said another official at the NFC.

The failure in supplying additional food by the corporation has drawn flak following its decision to reduce food quota to remote districts earlier this year. While the corporation had supplied 8,400 tons of foodstuffs last year, it decided to downsize the quota this year to 6,400 tons.

Sugarcane producers stage strike

BARA, June 26 (PR)- Sugarcane farmers of three Terai districts staged a sit-down strike demanding the government to clear their outstanding payment in Pathlaiya on Thursday.

The strike ran for one and half hours which began at one p m, was led by Diwakar Poudel of Sugarcane Farmers Protest Committee (SFPC) and participated in by farmers from Bara, Parsa and Rautahat districts.

"The protest has been launched as a fore-warning to the government. If the government did not clear our accounts by July 5, we would launch more aggressive protests and block the highway," he said. He further noted that the sit-down strike was just for a day as paddy cultivation season has already started.

Birgunj Sugar Factory (BSF), the state-owned enterprise, is yet to pay Rs 3.6 million to 3,040 sugarcane farmers of these districts for last two years. Although the government has already released the amount to the factory, Parsa district administration office is barring clearance of arrears, according to SFPC officials.

New arrangement likely to guide ghee exports

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KATHMANDU, June 26 : In a clear indication of India’s intention to channelise ghee exports from Nepal, the southern trade partner has approached domestic ghee manufacturers for supply and pricing proposals, said a source preferring anonymity.

The demand for proposals and terms and conditions has been placed by the State Trading Corporation (STC), a newly constituted body of the Indian government, that would oversee Nepali ghee imports by India.

The source further added that the Indian side has forwarded some specific terms and condition for Nepali ghee to enjoy duty-free market even under the quota of 100,000 tons as fixed during the renewal of the 1996 Nepal India Trade Treaty last year.

The STC has formally approached each of the domestic ghee manufacturers to submit it details on quantity, price and quality standard of products that they can supply to India during the months of July through September.

"India has also forwarded the specifications that Nepali producers would need to fulfil to be eligible to export ghee to India," said the source.

Meanwhile, domestic ghee manufacturers argue that mentioning the price for the product in advance is a difficult task. In the past, the export price of the product was fixed on the basis of market demand and negotiations with Indian dealers, according to them.

"The latest proposal of the STC reflects its intention to fix a standard price while importing Nepali ghee, which is against the norms of fair competition," they said, sternly lambasting the corporation’s approach.

The letter forwarded by the corporation further informs that the quantity and quality of the Nepali supply would be determined and approved only when the consignment reaches the destination. "Independent surveyor would be appointed to verify the quantity and quality of supply and its verification would be necessary for clearing the export account," it adds.

The payment would be made only after a week of surveyor’s verification through a demand draft or a letter of credit, according to the letter. Local manufacturers, however, raise objections to such arrangement.

"This will curb competition in ghee exports and establish STC’s monopoly in the import and local supply process," they said, further stating that the latest Indian move is designed to discourage Nepali ghee exports to India.

India has been imposing various obstacles to Nepali ghee exports in recent years. So much so, ghee exports from Nepal have been stalled for the last three months and the country has not exported a single ton of ghee under the quota in the current Indian fiscal year. The Indian fiscal year begins each April 1st.

The STC was constituted as an alternative to Central Warehousing Corporation (CWC). Ghee exports has been stalled ever since the Kolkata high court barred CWC from issuing a no objection certificate to Indian ghee importers.

Businessmen flay Govt for indifference

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KATHMANDU, June 26 ; Businessmen from Nuwakot Chambers of Commerce and Industry (NCCI) today lambasted the government for failing to complete Kathmandu-Rasuwagadi road despite initiating its construction 18 years back.

"While the government has been showing laxness, the country is losing opportunity to expand trade with China, particularly Tibet," they said. Kathmandu-Rasuwagadi is the shortest road connection to Tibet.

Organising a press meeting today after conducting an on-site visit of the construction area, they said that although the road from Kathmandu to Syafrubeshi is already complete, the remaining 19-kilometre construction from Syafrubeshi to Rasuwagadi is yet to be carried out.

"The laxness on the part of the government has come despite the understanding reached between the Nepali as well as Chinese government to construct the road some two years back," states a press release issued on the occasion.

The government commitment to construct the Syafrubeshi-Rasuwagadi road dates as back as fiscal year 1999/00 when the government for the first time allocated budget for its construction. "However, except for the feasibility study, nothing has been done so far," the release adds.

The completion of the road would provide another link with China, thereby opening a new business centre at Kirong. China has already constructed a 22-km long road linkage to Rasuwagadi from Kirong, one of the major trade centres of Tibet with which Nepal enjoyed sizeable trade in the past.

However, trade with Kirong has come to near standstill after the operation of Araniko Highway linking Kathmandu with Tatopani, and business with Tibet shifting to Tatopani customs.

Speaking on the occasion, Dhana Narayan Chitrakar, President of NCCI, said that roads to Rasuwagadi can be feasibly constructed along the banks of Bhotekoshi river. "Here, topography suits road construction and the construction of bridge at the river will directly link the country with China," he said.

According to officials, Rasuwagadi is closer to Kathmandu than Tatopani and even its distance from Birgunj is lesser by 55 km that from Birgunj to Tatopani. "Establishment of formal trade through Rasuwagadi will also help industrial development of Bidur municipality of Nuwakot," said Chitrakar.

Cases of cooperatives fraud increasing

By Madhav Dhungana

BHAIRAHAWA, June 26 : Established with an aim to socially and economically promote the life standard of low-income groups, people are losing faith on Savings and Credit Cooperatives nowadays.

In the beginning, the cooperatives managed to collect thousands of rupees hard-earned money from the poor people by approaching them with economic temptation and other lucrative offers.

But the saddest part is that their lucrative offers disappeared all of a sudden leaving the depositors in distress as the promoters of the cooperatives closed their offices and vanished.

Depositors are not only angry with the fraud cooperatives, but also with the local administration as the latter showed no interest in taking any legal action against the cooperatives engaged in gross irregularities.

"I deposited my hard-earned money in the cooperative dreaming a better future, however my dream shattered as I found the office locked when I reached there to withdraw my saving", lamented Gomati Poudel, who had deposited her money in one of the so-called cooperatives.

She is angry about the cooperatives. She has vowed no to deposit money in any cooperatives in her life.

"I requested the local administration to manage to return my money from the cooperative but nobody listened to my plea. Those who cheated me are freely moving in the society", she said. There are around eight thousands victims of the cooperatives like Gomati in the district.

"Some 7,788 people have been cheated by the cooperatives till mid-May and 100 out of 277 cooperatives have been closed", said Krishna Prasad Lamsal, chief of the District Cooperatives Office. He said that the number of closed cooperatives is increasing and growing number of people have developed negative attitude towards them.

Just two years back, six cooperatives had fled cheating the poor people with Rs 46 million. The cooperatives cheating the amount include Rojgar Mulak Credit and Saving Cooperatives, Sidha Credit and Saving Cooperatives, Buddha Credit and Saving Cooperatives, Surya Daya Cooperatives, Laxmi Credit and Saving Cooperatives, and Siddhartha Credit and Saving Cooperatives.

"The local administration hasn’t made any attempt to take action against such fraud cooperatives", said Lamsal, adding that the district cooperatives office doesn’t have any right to take action against them.

The officials of the district cooperative office pointed out that after the promulgation of Cooperative Act 1991, there is lack of institution to take action against them because it has curtailed their right to take action against the cooperative involved in fraud business.

Right now, there are 277 cooperatives in the district, which was 26 before the promulgation of the Act. The Act has largely increased their number by creating a favourable environment for the cooperatives. The government has sent a circular at the district offices not to register any more cooperatives.

Nepal takes part in int’l IT meet

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KATHMANDU, June 26 : An expert group meeting on ‘Applications of Information and Communication Technologies’ for export competitiveness of small and medium enterprises (SMEs) in developing countries and transition economies was held in Geneva, Switzerland, from 19 to 20 June.

Fifteen participants from thirteen countries, including Nepal, India and Bangladesh from South Asia, participated in the meeting. Nepal was represented by Atma Ram Ghimire, Executive Director of National Information Technology Centre (NITC), and Meera Bhattarai, Director of Association of Craft Producers of Nepal.

Organised by International Trade Centre (ITC), which seeks to support the business sectors of developing economies, other participating countries in the meet included South Africa, Brazil, Kyrgyzstan, United States, Russia, Kenya, Canada, Tanzania, Romania and the Philippines.

During the meeting, Nepal presented three areas of cooperation on IT applications in SMEs. A pilot project initiative for the design and implementation of payment gateway, assistance to rural community information centre to cater business development services to SMEs in rural Nepal and e-trade bridge programme was proposed to the ITC.

Ghimire, talking to mediamen upon his return, said that Nepal’s proposal was laid since the main objective of the meeting was to promote the use of e-commerce globally. The ITC supports such initiatives of lesser developed economies. Ghimire further stated that with proper support, Nepal’s prospects in information and communication technology (ICT) is tremendous.

"Considering the areas that are ready for e-commerce, by 2010, 20 per cent of the total trade in Nepal can potentially be carried out using e-commerce," Ghimire asserted. A number of sectors in Nepal are already using e-commerce, including banks and big business houses.

However, pointing to some of the structural bottlenecks to an effective growth of ICT in Nepal, Ghimire cited lack of ‘payment gateway’ for the purpose of e-commerce development, among others.

Govt to channel funds for rural tourism infrastructure

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KATHMANDU, June 26 : The government has recently decided to grant 30 percent of the total income generated from the tourism sector to the local bodies for the development of tourism infrastructure in those regions, a senior level government official said today.

The new decision would be effective from the next fiscal year, said Shanker Koirala, chief of Tourism Industry Division at the Ministry of Culture, Tourism and Civil Aviation. He further added that the decision is in line with the objectives set by Local Self-Governance Act 1999.

He was speaking at an Eco Trekking Workshop and Adventure Meet organised by Travel Agents Association of Nepal (TAAN) in the capital today. Koirala, during the programme, expressed his hope that the latest decision would help upgrade tourism infrastructure.

Though the ministry is yet to finalize the guidelines on how the allocated amounts would be spent, a decision has already been taken to open a separate bank account to deposit this amount, he said.

Furthermore, the government has allowed the private sector to operate heliskiing in the Manang district. "As heliskiing is a new tourism product in the Nepali market and is operated mostly during the off-seasons, this would be helpful in promoting Nepali tourism," Koirala said.

Earlier several leading professionals had presented different papers related to the development of eco-trekking. Presenting a paper on sellers’ perspective, Lars Gundursan, a tour operator from Denmark, said that the major problem of Nepal’s tourism market is inaccessibility.

"European tourists book air tickets for Nepal long before the date of travel. Yet, they face difficulty in coming to Nepal," he said. Lack of air seats is a terrible problem for Nepali tourism industry, he added.

Several issues have been raised for the development of the tourism sector, but the implementation aspect of the recommendations is too poor, he said further. He added that long run planning is required for the revival of the tourism business.

Among those who presented papers include P T Sherpa, Director of Kathmandu Environmental Education Project (KEEP), Rabi Jung Pandey, National Programme Manager of Tourism for Rural Poverty Alleviation Project, and Navin Singh Khadka, President of Journalists in Nepalese Tourism.

Similarly, Bhumi Lama, General Secretary of Nepal Mountaineering Association, Keshab Das Khwanju, General Secretary at Himalayan Rescue Association, Lars Gundursan, tour operator from Denmark, and Hikmat Singh Ayer, Manager at Nepal Tourism Board, also made presentations.