{"id":6041,"date":"2023-07-31T09:23:10","date_gmt":"2023-07-31T09:23:10","guid":{"rendered":"https:\/\/ricenewstoday.com\/dev\/?p=6041"},"modified":"2023-07-31T09:23:11","modified_gmt":"2023-07-31T09:23:11","slug":"nepals-traders-hike-rice-prices-as-india-orders-export-halt","status":"publish","type":"post","link":"https:\/\/ricenewstoday.com\/dev\/nepals-traders-hike-rice-prices-as-india-orders-export-halt\/","title":{"rendered":"Nepal\u2019s traders hike rice prices as India orders export halt"},"content":{"rendered":"\n

Nepal\u2019s traders hike rice prices as India orders export halt<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

KATHMANDU<\/strong> \u2013 Hari Sharan Basnet of Machhegaun, Kirtipur had bought a 25-kg bag of Pearl brand rice from India for Rs2,150 two weeks ago.<\/p>\n\n\n\n

Last week, after he heard that India had banned rice exports, he went to buy another bag expecting the price to increase. And so it had; he was too late.<\/p>\n\n\n\n

\u201cOn Monday, I paid Rs2,451 for the same rice that I bought two weeks ago,\u201d he told the Post. \u201cI bought it anyway.\u201d<\/p>\n\n\n\n

Basnet says the same bag of rice cost Rs1,650 last year, which means the price went up by Rs800 per bag in one year.<\/p>\n\n\n\n

On July 20, Nepal\u2019s southern neighbour ordered a halt to rice exports triggering fears of further inflation in global food markets.<\/p>\n\n\n\n

India, the world\u2019s largest exporter of rice, said it was imposing a ban on the export of non-Basmati white rice to keep its food reserve intact amid the threat of El Ni\u00f1o disruptions.<\/p>\n\n\n\n

The El Ni\u00f1o climate event, which is caused by warmer surface waters in the Pacific Ocean, leads to an increased risk of heavy rainfall and droughts in certain parts of the world.<\/p>\n\n\n\n

Concerns over the return of the El Ni\u00f1o weather phenomenon have already driven benchmark prices to a two-year high, heightening fears of potential crop damage and exacerbating the upward trajectory of prices in the global rice market, according to reports.<\/p>\n\n\n\n

The embargo also has been imposed to mitigate the risk of heightened inflation ahead of the upcoming Indian elections.<\/p>\n\n\n\n

India accounts for more than 40 percent of world\u2019s rice exports, and low inventories with other exporters means any cut in shipments could inflate food prices already driven up by Russia\u2019s invasion of Ukraine last year and erratic weather.<\/p>\n\n\n\n

The impact of the export ban is now visible in Nepal.<\/p>\n\n\n\n

Dibakar Neupane, proprietor of Neupane Kirana Store at Kumarigal, said he had been selling a common rice variety at Rs2,100 per bag until last week.<\/p>\n\n\n\n

\u201cThe wholesaler has increased the price to Rs2,300 per bag. People nowadays often ask about prices.\u201d<\/p>\n\n\n\n

India\u2019s latest export ban has come as a surprise for many.<\/p>\n\n\n\n

The International Food Policy Research Institute (IFPRI) says that India has often imposed export control measures during periods of high global prices. During the 2007-08 and 2010-11 food price crises, India stopped the export of rice, mostly non-Basmati, for extended periods.<\/p>\n\n\n\n

With global markets disrupted by Russia\u2019s invasion of Ukraine starting in February 2022, India initially imposed a wheat export ban, fearing domestic inflation and rising import demand from the rest of the world, then a 5 percent export limit on broken rice and a 20 percent export levy on unmilled and husked rice (both likely to continue through 2023).<\/p>\n\n\n\n

IFPRI, which provides research-based policy solutions to sustainably reduce poverty and end hunger, says that if India continues to allow sales of non-Basmati rice to neighbouring countries, or if the ban proves temporary, the market impacts may be limited.<\/p>\n\n\n\n

But a \u201chard\u201d ban could have large implications for countries currently dependent on imports from India.<\/p>\n\n\n\n

The implication of the export ban could be bigger in Nepal given the country\u2019s growing dependence on Indian rice, particularly long-grain varieties.<\/p>\n\n\n\n

With lumpy skin disease killing farmers\u2019 cattle by the thousands and El Ni\u00f1o causing weather chaos, Nepal could face food shortages or food price shocks, warn experts.<\/p>\n\n\n\n

\u201cThe Industry Ministry should take the issue seriously and request the Indian government to consider Nepal favourably,\u201d a trade expert said.<\/p>\n\n\n\n

Rice is the staple of Nepali households. Nepalis eat rice in the morning and rice in the evening. Experts say a supply deficit of even 2 or 3 percent could send market prices soaring.<\/p>\n\n\n\n

Nepal requires 4 million tonnes of rice annually to feed its population, and the deficit is made up by imports from India.<\/p>\n\n\n\n

According to the Department of Customs, cereal imports from India were valued at Rs56.62 billion in the last fiscal year.<\/p>\n\n\n\n

Nepal imported 174,120 tonnes of non-Basmati rice worth Rs10.78 billion from India alone in the last fiscal year. Imports of Basmati rice totalled 48,569 tonnes worth Rs4.63 billion.<\/p>\n\n\n\n

Similarly, the import of paddy from India amounted to 555,869 tonnes worth Rs19.99 billion in the last fiscal year ended mid-July.<\/p>\n\n\n\n

The International Monetary Fund (IMF) has encouraged India to remove export restrictions on non-Basmati rice. The IMF said that these types of restrictions were likely to exacerbate volatility in food prices in the rest of the world.<\/p>\n\n\n\n

The government has targeted to keep inflation within 6.5 percent this fiscal year.<\/p>\n\n\n\n

Economists say that rising prices in a country like Nepal whose economic growth in the last fiscal year has been projected to be one of the lowest, growing at 1.86 percent and suffering from a high inflation rate, will be catastrophic, particularly for the low-income bracket.<\/p>\n\n\n\n

\"\"<\/figure>\n\n\n\n

Nepal requires 4 million tonnes of rice annually to feed its population, and the deficit is made up by imports from India. Post File Photo<\/p>\n\n\n\n

An IMF official told the Post that Nepal\u2019s inflation is very high. \u201cNepal has adjusted the monetary policy in a prudent way. The policy will help to bring down inflation this fiscal year, but it will depend on India\u2019s policy,\u201d the IMF official said.<\/p>\n\n\n\n

\u201cNepal must be serious about keeping inflation low as it can impact poor people.\u201d<\/p>\n\n\n\n

For Basnet, spending around Rs5,000 on a 25-kg bag of rice and a cylinder of cooking gas per month is painful. \u201cWe are forced to spend most of our income on food,\u201d he said.<\/p>\n\n\n\n

Nepali traders said that even though India adopts a flexible supply policy considering its neighbours, Nepali bureaucrats are least bothered to request India to increase shipments.<\/p>\n\n\n\n

Nepali markets do not operate in accordance with government policy. Consumer rights activists say market anarchy is rampant despite having a dedicated governing body to conduct market inspections.<\/p>\n\n\n\n

Prem Lal Maharjan, president of the National Consumer Forum, says Nepal has food stocks that will last for two-three months, but on the pretext of India\u2019s export ban, traders have already hiked prices.<\/p>\n\n\n\n

\u201cThat\u2019s black marketing,\u201d he said. \u201cRight after the rice ban was imposed, the Department of Commerce, Supplies and Consumer Protection, District Administrative Office and all local units should have gone on alert. But no one is concerned.\u201d<\/p>\n\n\n\n

The export ban was announced for non-Basmati rice but prices of all food items have gone through the roof.<\/p>\n\n\n\n

\u201cThe prices of all types of rice have increased by Rs200 to Rs250 per 20-kg or 25-kg bag from Monday,\u201d said Pavitra Bajracharya, immediate past president of the Nepal Retailers Association.<\/p>\n\n\n\n

Wholesalers argue that the hike in prices is due to India\u2019s rice export ban.<\/p>\n\n\n\n

\u201cThere are sufficient stocks of rice. There is no need for panic buying,\u201d Bajracharya.<\/p>\n\n\n\n

Maharjan asked how the export ban announcement automatically increased the rates even though there is enough inventory in the market. \u201cOpportunist traders are taking undue advantage,\u201d he said.<\/p>\n\n\n\n

\u201cBesides rice, the price of sugar has also increased to Rs110 per kg from Rs100 within a few weeks,\u201d said Bajracharya. \u201cThe price of jeera has reached Rs1,400 per kg, which was Rs450 per kg five months ago,\u201d he said.<\/p>\n\n\n\n

\u201cThe prices of lentils and legumes are fluctuating, but they are still on the high side. Lentils (mushuro) now cost Rs170 per kg, up from Rs150 last month,\u201d said Bajracharya.<\/p>\n\n\n\n

\u201cEverything is expensive. Inflation, it appears, does not impact policymakers and politicians,\u201d said Basnet. \u201cNo one is bothered.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

Nepal\u2019s traders hike rice prices as India orders export halt KATHMANDU \u2013 Hari Sharan Basnet of Machhegaun, Kirtipur had bought a 25-kg bag of Pearl brand rice from India for Rs2,150 two weeks ago. Last week, after he heard that India had banned rice exports, he went to buy another bag expecting the price to increase. […]<\/p>\n","protected":false},"author":1,"featured_media":6042,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[176],"tags":[167,160],"class_list":["post-6041","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","tag-indian-rice","tag-rice-export"],"acf":{"enable_premium_overlay":false},"yoast_head":"\nNepal\u2019s traders hike rice prices as India orders export halt - Rice News Today<\/title>\n<meta name=\"robots\" content=\"noindex, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Nepal\u2019s traders hike rice prices as India orders export halt - Rice News Today\" \/>\n<meta property=\"og:description\" content=\"Nepal\u2019s traders hike rice prices as India orders export halt KATHMANDU \u2013 Hari Sharan Basnet of Machhegaun, Kirtipur had bought a 25-kg bag of Pearl brand rice from India for Rs2,150 two weeks ago. Last week, after he heard that India had banned rice exports, he went to buy another bag expecting the price to increase. 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