January 20: The Ministry of Industry, Commerce and Supplies has requested the Indian Embassy in Kathmandu to provide 30,489 metric tons of wheat to 24 flour mills operating in Nepal. India has pledged to supply 50,000 metric tons of wheat to Nepal on needs basis. The ministry has allocated quotas for the 24 flour mills based on the recommendation of Nepal Flour Mills Association.

After the Indian Embassy sends the letter to India’s Ministry of Commerce, Nepali flour mill operators will be able to buy wheat from the Indian traders of their contact.

Spokesman at the Ministry of Industry, Commerce and Supplies Dr Narayan Regmi informed that the quota for wheat imports which will be completed by March and the businessmen will be able to import the remaining quantity of wheat.

India banned wheat exports 10 months ago citing the Russia-Ukraine war and the decline in production. This had affected the Nepali industries that are chiefly dependent on India for wheat supplies. India is one of the largest wheat producers in the world. The price of fine flour in Nepal, which was Rs 50 per kg before India's export ban, has gone up to Rs 70. Similarly, the price of Rs 55 per kg of common flour has risen to Rs 76, and semolina which used to cost Rs 60 per kg now costs Rs 80 while the price of bran, which used to be sold at Rs 38 per kg has now increased to Rs 46. Industrialists say that the price of all products will be reduced by 15 percent if wheat supply from India resumes.

Currently, the price of wheat in Nepal is Rs 52 per kg, and that of fine flour is Rs 70, common flour Rs 76, semolina Rs 80 and bran Rs 46. This price does not include VAT. The price of wheat in India is INR 28.50, fine flour INR 32, common flour INR 34, and bran INR 28 per kg.

Businessmen say that Nepal's flour mills need 1 million metric tons of wheat annually. Kumud Dugad, president of the Nepal Flour Mills Association, said 40 percent of the demand is fulfilled by Nepal's domestic production, while the remaining 60 percent should be imported from India. He said that the production of more than two dozen industries has stopped due to the short-supply of wheat.

Secretary of the association, Bikash Begwani said that after the arrival of wheat from India, the price here will be cheaper by 15 percent and the price of flour will be cheaper by Rs 10 per kg. Begwani said that the government should request an additional 300,000 tons of wheat from India as the quota of wheat arriving in the first batch will last for just 2 weeks. He said that 300,000 tons of wheat will be sufficient till April when domestic wheat will be available in the market.

India gave permission for the export of 50,000 tons of wheat to Nepal following a request from the then Minister for Industry, Commerce and Supplies Dilendra Prasad Badu.