December 14: The government's plan to bring 1 million metric tons of paddy from India has become uncertain. Although the Ministry of Foreign Affairs wrote a letter to the Government of India on August 4, demanding 1 million tons of paddy, 1 million tons of rice and 50,000 tons of sugar under customs exemption, New Delhi has not given a concrete answer.

This year, the production of paddy in Nepal has declined due to low rainfall at the time of planting. Anticipating the possibility of food crisis, the government tried to import paddy from India but has not been successful so far.

Gajendra Kumar Thakur, the spokesperson for the Ministry of Industry, Commerce and Supplies (MoICS), informed New Business Age that despite several high-level diplomatic discussions with the Government of India, the two sides have not reached a concrete decision. So far, India has only agreed to supply 95,000 tons of rice. However, the issue of supplying paddy and sugar has not been finalized.

The new season for paddy plantation has already started. However, the Ministry of Agriculture has not yet released the data on how much rice has been produced in the country this year and how much is insufficient. “We can confirm the quantity of rice to be imported only after the agriculture ministry releases production data," said Thakur, spokesperson of MoICS, adding, "The Ministry of Agriculture will release the data in a few days and it will be easy for us to confirm the quantity required. Rice production is likely to decline even in India this year due to less rainfall, so we may not get as much as we ask for.”

The state-owned Food Management and Trading Company Limited and Salt Trading Corporation have been entrusted with the responsibility of importing 95,000 tons of rice that India has agreed to provide. Thakur said that the two companies have admitted that they cannot bring that much quantity of rice due to lack of storage facility and budget. Thakur added that the private sector can bring the rice that the state-owned companies cannot bring.

At present, the country has stock of rice that will only last for three months. So, the businessmen have requested the government to arrange the import of 1 million tons of rise as soon as possible to avoid the risk of food crisis.

The Nepal Rice Oil Lentil Industry Association met Prime Minister Pushpa Kamal Dahal and Industry, Commerce and Supply Minister Ramesh Rijal on Tuesday and made this demand.

The president of the association Kumud Kumar Dugad said the price of rice is likely to increase in the country due to the delay in importing rice from India.

According to the data of the ministry, 54,86,472 metric tons of rice was produced in Nepal in the last fiscal year.

Besides banning the export of rice, the Indian government has imposed a 20 percent customs duty on rice exports. It has had a direct impact on Nepal. As a result, the price of paddy has increased by Rs 10 per kg this year compared to last year. The price is expected to increase further in the coming days.