For now, we can ask India to exempt Nepal from the rice export ban
On July 20, India, the world's largest exporter of rice - accounting for 40 per cent of the global rice trade - put a ban on the export of non-Basmati rice, and its impact is already being seen in Nepal as well.
Using India's rice export ban as a pretext, traders have raised the price of different varieties of the staple food, which has seen a surge by more than 16 per cent in the domestic market in recent days. As a result, the price of a 25 kg bag of non-Basmati rice now costs Rs 2,100, an increase of Rs 300 just in the past few days.
Since most of Nepal's rice is imported from India, its ban definitely impacts the Nepali market.
But need the prices jump so drastically because of the ban or are the traders simply taking undue advantage of the situation at a time when all of the government's attention is focused on a number of scandals involving high-profile politicians and bureaucrats that have rocked the country, the latest being the smuggling of a quintal of gold bars? Paddy production in the country has been increasing over the years to reach 5.5 million tonnes last fiscal year to yield about 3.5 million tonnes of rice. This leaves a deficit of about half a million tonnes, which need to be imported from India. Nepal imported about 1.6 million metric tonnes of paddy last fiscal worth about Rs 37 billion. This is not the first time that the traders have resorted to increasing rice prices in the past one year without rhyme or reason. The price of different varieties of rice - as well as lentils and cooking oil - has been increasing since November last year. True, India had placed a ban on non-Basmati rice exports last year for three months beginning September. But in November, India had permitted the export of 600,000 tonnes of paddy while also lifting the 20 per cent duty it had slapped on different varieties of rice. Moreover, with the end of the harvesting season in November, rice prices should have come down, but they did not. Why? Weak market monitoring is to blame for the unbridled rise in the price of food. The government and the parties represented in the parliament cannot remain a mute spectator to the open loot taking place in the country. When food prices, in particular that of rice, the staple of almost 30 million people, go up, it's the poor people who suffer the most. The way the government has been shying away from taking any action against the traders and allowing them a free rein in the market, one is compelled to speculate if there is a nexus between the two, given that the latter provides heavy funds to the parties during the elections. Nepal cannot fault India for placing the ban on rice exports as it itself needs to control surging domestic food prices and augment its food reserves in the wake of the poor monsoon this year.
Nepal has no option other than to increase its food production, namely rice, by providing all the inputs necessary so that there is food security. We cannot be over-reliant on other countries for a basic food item like rice. For now, we can ask India to exempt Nepal from the ban as some small countries are mulling over doing.
Energy museum
The state-owned Nepal Electricity Authority (NEA) deserves a pat on its back for taking the initiative to convert the country's first hydropower project at Pharping into an energy museum.
NEA is preparing a master plan to convert the 500 kilowatt project, built in 1911, to develop it into a hydropower museum, and a tourist spot at a cost of around Rs 1 billion.
As per the plan, there will be a green park, restaurant, shop, zip line, picnic spot, library, wall garden and other structures on 324 ropanis of land owned by the project. Since the project stopped generating energy since 1981, the entire area, including the reservoir and powerhouse, had remained unused as the water in the reservoir was used to supply water for drinking purpose in different parts of Lalitpur.
Since the first hydel project came into operation in the country, Nepal has merely been able to generate around 3,100 MW of clean energy in a span of 112 years. It means the country has been adding on average 27 MW of electricity every year. It also speaks volumes about our slow progress when it comes to harnessing our abundant water resources, which have now been dubbed as a regional green powerhouse, which can meet the energy needs of South Asian countries.
A version of this article appears in the print on August 3, 2023, of The Himalayan Times.
