KATHMANDU, Dec 13: The Association of Nepalese Rice, Oil & Pulses Industry has requested Prime Minister Pushpa Kamal Dahal along with the top political and administrative leaders to take a diplomatic initiative to secure customs exemptions for one million metric tons of rice from India saying that there is not enough rice production in the country.
As the production of fine paddy in Nepal is low, at least one million metric tons of fine paddies will not be enough for the whole year, according to the Association. The Government of Nepal sent a letter to the Indian Embassy through the Ministry of Foreign Affairs and requested the Government of India to provide 1 million metric tons of rice under the customs exemption facility.
The Association says that due to the inability to import rice from India, the price of rice in Nepal will increase in the coming days and will affect the consumers.
"Since it is the responsibility of all of us to provide easy supply of rice in the country, the Association has requested the Prime Minister to arrange for the import of one million metric tons of rice under customs exemption facility for this year through a high-level diplomatic initiative," said Association President Kumud Kumar Dugad.
A delegation of the Association led by President Dugad met Prime Minister Pushpa Kamal Dahal along with Minister for Industry, Commerce and Supplies Ramesh Rijal, Commerce and Supplies Secretary Narayan Prasad Sharma Duwadi and Joint Secretary Ram Chandra Tiwari.
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The general secretary of the Association, Deepak Kumar Paudel, said that the present condition of the domestic rice mills and the adequacy of rice were discussed in the meeting.
When the Indian government imposed a 20 percent customs duty on exports, it had a direct impact on Nepal and the price of rice this year has increased by Rs 10 per kg compared to last year’s.
According to the Association, when purchasing rice by importing it after levying a 20 percent customs duty from India, it costs Rs 50 per kg. However, if the rice is bought after exempting it from customs duty, it costs Rs 42 per kg.
According to the Association, diplomatic initiative is demanded because the price of paddy varies by Rs 8 per kg, while the price of rice varies by Rs 16 per kg.
"Due to such a large difference in prices, the domestic investment of billions in rice mills will be at risk as Nepali products cannot have healthy competition with rice and paddy imported to Nepal through customs fraud," said the Association.
Currently, India imposes a 20 percent customs duty on rice exports, while Nepal Customs imposes a five percent agricultural reform fee.
In this way, as 25 percent customs duty is levied on rice import, if rice cannot be brought from India at a subsidized rate, the price of rice will increase, according to the Association. The Association mentioned that the Nepali production of rice, an essential food item for daily life, which was established with millions worth of investment, will be stopped.
The Association claims that rice processing and rice production along with co-products such as rice bran oil, industrial fuel (boiler plant), corn, animal feed, feed industry, distillery and raw materials of snacks depend on the production of rice industry and all of them are directly affected.
Along with the rice industry, these industries have a direct impact on the country's economy, employment and the country's revenue.
Currently, the rice in Nepal and the rice purchased by the industry and kept in warehouses can only be sufficient for about three months, so the Association has urged timely action and initiatives to address the impending rice shortage.
