Kathmandu: India’s export tariff on rice has sparked food inflation fears in Nepal which is bracing for a poor summer harvest.
Rice traders in Bara and Parsa industrial corridor have said the imposition of a 20 percent customs duty on the export of rice and paddy by India would have a direct impact on the Nepal’s market.
Birgunj Industry and Commerce Association said that as per a letter recently issued by India, it has fixed a 20 percent customs tax rate on the export of paddy and rice. Before this, it was customs tariff-free. The Association said that the imposition of a 20 percent customs surcharge by India on rice and paddy export will hit the industries, consumers, and the national economy.
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Nepal Rice, Oil, Lentil Industries Association Central President Dr. Subodh Gupta said, India’s latest decision is not fair for the industries, traders, consumers, and the market in Nepal. Gupta worried that this drastic decision by India might lead to a situation in which the rice mills in Nepal will be closed and called on the government to address the problem at the earliest. Nepal has been importing rice worth over Rs 8 billion annually from India.
Nepal imported 550 thousand metric tonnes of paddy, 520 thousand metric tonnes of rice, and 50 thousand metric tonnes of rice grits from India last year alone. There are around 2,500 rice industries across the country and half of these are closed, it is said.
Even those rice industries which are operating are not operating at their full capacity due to various reasons. The rice industries in Nepal have been producing 40 percent rice and the rest of the demand is met from imports from India. Web Desk
