January 22: The import of agricultural products has decreased by Rs 23.3 billion in the first six months of the current fiscal year compared to the corresponding period of last FY.

According to the latest data published by the Department of Customs, the import of agricultural products has decreased in the review period due to the restrictions imposed by India.

The import of food items such as paddy, rice, wheat, ghee, oil, sugar has decreased, while the import of tea, coffee, fruits and nuts has increased.

Analysts say that the price of food grains is likely to increase if the import of the main agricultural products decreases.

Punya Bikram Khadka, information officer of the Department Customs said that the imports of agricultural products into Nepal has decreased due to restrictions imposed by India. According to him, the import has been affected due to the ban imposed by India on the export of various agricultural products including paddy, rice, wheat, onion, sugar.

In addition, he said that imports have also been affected due to recent structural changes in the quarantine centers at the border crossing to Nepal that has caused problems with the customs inspection.

The country imported ghee and oil worth 52.1 billion in the first six months of the previous fiscal year, but the import value this year stood at Rs 25.34 billion. The import of ghee and oil decreased by Rs 26.76 billion this year.

Similarly, Nepla had imported food items such as rice, corn and wheat worth Rs 27.91 billion in the first six months of last FY while such items worth Rs  22.22 billion have been  imported this year. Likewise, sugar worth Rs 2.31 billion was imported in the first six months of last year, but in the same period of the current year, sugar worth Rs 1.93 billion was imported.

Khadka said that if the import of the main agricultural produce decreases, the market price of those products may also be affected.

“Our market policy seems to be very weak. From the very next day after the news of decline in imports comes out, there is an artificial shortages of goods in the market and price increases. Therefore, it cannot be said that it will not happen again,” he told New Business Age.