Thursday, December 14, 2023

Rice industrialists seek govt help to import paddy from India

Kathmandu, Dec. 13

The Association of Nepalese Rice, Oil & Pulses Industry (ANROPI) has requested the government to facilitate the private sector in importing 10 million tonnes of paddy from India on the pretext of the shortfall of the same amount of produce this year.

The Association called on Prime Minister Pushpa Kamal Dahal ‘Prachanda’ on Wednesday and urged him to take a diplomatic initiative to bring 10 million tonnes of rice from India under a customs exemption facility saying that enough rice was not produced in the country.

They reminded the PM of the request of the Government of Nepal made to India through its embassy in Kathmandu in September this year to provide 10 million tonnes of paddy. However, the paddy has not yet been imported to Nepal.

The delegation of the ANROPI led by its President, Kumud Kumar Dugar, also called on the Minister for Industry, Commerce and Supplies, Ramesh Rijal, Secretary of Commerce, Narayan Prasad Sharma Duwadi and Joint Secretary Ram Chandra Tiwari to update them about the current status of paddy in Nepal and need to import from India.

According to it, due to the inability to import paddy from India, the price of rice in Nepal will go up in the coming days and the consumer might have to pay extra price.

ANROPI updated the PM, Minister and other government officials about the condition of the rice mills in Nepal and the adequacy of the raw materials.

When the Indian government imposed a 20 per cent 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, read a statement issued by the Association.

There is a difference of Rs. 8 while importing paddy by paying 20 per cent customs duty – it costs Rs. 50 with duty and Rs. 42 without duty which makes a difference of Rs. 16 for a kilo of rice.

Entrepreneurs said that the businesses operating legally are facing hard times as they have to compete with the smuggled rice which comes at a lower price.

Due to such a huge difference in prices, domestic investment of billions of rupees in rice mills will be at risk as Nepali products cannot compete with rice and paddy imported illegally to Nepal, said ANROPI.

India imposes a 20 per cent customs duty on rice exports, while Nepal demands a 5 per cent agricultural reform duty. It makes the total customs charge 25 per cent while importing rice.

Published in The Rising Nepal daily on 14 December 2023. 

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