October 18: India has imposed a ban on wheat exports to avert a possible food crisis in the country.

Thirty two flour mills operating in Nepal are struggling to import wheat due to the ban imposed by India. As a result, the mills informed that their production has shrunk by almost 60 percent. The flour mills, which are operating at 40 percent of their total capacity, are now compelled to buy wheat costing Rs 34 for Rs 50 per kilogram to produce refined flour and semolina.

The domestic production of Nepal is able to meet the demand only for four months while the demand for flour during the remaining eight months is met through imports from India.

The price of flour and semolina has increased by Rs 15 per kg in four months after India imposed the ban. Due to the lack of wheat from India, the demand for local production has increased by 60 percent, and the prices have also increased.

Three months back, the price of wheat was Rs 34 per kg, but now it has reached Rs 50 per kg. After the increase in the price of wheat, the price of all-purpose flour, which was previously priced at Rs 49 per kg, increased to Rs 68 per kg and the price of fine flour has increased to Rs 68 from Rs 47 per kg.

Bikash Begwani, secretary of Nepal Flour Mills Association and Vice President of Morang Merchants’ Association informed that the price of semolina has climbed to Rs 70 from Rs 55 per kg.

A total of 32 flour mills operating in Nepal are in crisis due to unavailability of wheat from India. After the increase in the prices of flour and semolina, industries manufacturing noodles and biscuits have been affected as well. Some industries are reducing the weight of noodles and biscuits and selling them at the same price instead of increasing the price. At present, consumers have to pay an additional Rs 75 to buy 5 kg of flour.

Tihar is the time when flour and semolina are sold the most since these are used to make bread and sweet dishes.

Although India has assured that it will supply as much quantity of wheat as requested by Nepal, the domestic industries of Nepal are facing crisis as the government failed to specify the quantity of wheat required for the country.

“The government is not bringing wheat and the prices are increasing here. But large quantity of flour is coming from India without interruption due to the open border. As a result, the flour mills of Nepal are on the verge of closure,” Begwani said.

After India stopped the export of wheat, the industrialists were demanding the government to bring wheat through “G2G” process.

However, the Ministry of Industry, Commerce and Supplies and the Ministry of Foreign Affairs are confused saying that although they had sent letter to India before Dashain for the required quantity of wheat, they are yet to get any response due to lack of effective initiatives from India.

Altogether 32 flour mills of Nepal need 1 million metric tons of wheat every year. Out of that amount, 350,000 tons are produced in Nepal while the remaining 650,000 tons should be imported from India.

Last year, Nepal imported 335,932 metric tons of wheat worth more than Rs 6.9 billion from India. Ram Chandra Dhungana, information officer of Biratnagar Customs Office, informed that 6,100 tons of wheat worth more than Rs 2.19 billion was imported from Biratnagar Customs last year.