November 2: India has removed the export duty on Nepal-bound paddy and rice. India had imposed a 20 percent duty on the export of paddy and rice in the second week of September while also banning the export of various food items to prevent a possible food crisis amid Covid-19 pandemic and the Russia-Ukraine war.

The Indian Department of Revenue issued a notice on Monday stating that no such duty will be charged on exports to Nepal. After India imposed tariffs, local industrialists were worried that there would be a shortage of raw materials for the rice industry in Nepal and the illegal import of rice would thrive.

Birgunj Chamber of Commerce and Industries and the Association of Nepalese Rice, Oil and Pulse Industry had requested the Government of Nepal and Indian agencies to revoke the duty. Subodh Kumar Gupta, who is the president of both these organizations, welcomed the move of India.

Gupta shared, “After India imposed a 20 percent duty on exports, Nepalese rice industries were on the verge of closure. Nepali consumers were forced to buy rice at expensive rates. With this decision of India, the problems of Nepal's industries and consumers have been addressed.”

India decided not to charge duty for the annual export of 600,000 metric tons of paddy for Nepal. Last year, the industry of Nepal imported 5.5 million tons of rice from India, according to the data of the association. Based on this data, the industrialists requested India not to levy duty on imports of at least 600,000 tons of rice.

Bishwamitra Prasad Kalwar, the owner of New Om Food Industry said that this decision has given relief to the people of Nepal as the kitchens had became more expensive after India, the largest exporter of paddy and rice, tightened the export.

“Since the Covid-19 pandemic, the price of every commodity has increased. On top of that, when the price of rice, which is the staple food in Nepal, increased, the life of the common people got severely affected. This decision brought relief not only to the industrialists but to the consumers as well,” he said.