Local farmers panic as India endorse food security bill, 2013

Indian Food Security Bill 2013 has panicked the Nepali market as experts saying that it would have an adverse impact. Republica reports, “Given Nepal’s increasing dependence on India for food and other farm supplies, introduction of the food security law is all set to weaken the competitiveness of rival products in Nepal. It further reports that the newly passed law is aimed at reducing farm costs, Indian products will be available at far cheaper prices in Nepal itself, compared to the prices of locally produced products.

The government has already endorsed the draft of the Agriculture Development Strategy (ADS) aiming to improve the livelihood of farmers in the country. The effect that is resulted from the Indian Food Security Bill is less important than increasing food insecurity in the country. According to the World Food Program (WFP), people from more than 42 districts in Nepal under food insecurity.

On Power

The acute power shortage and the negligence of the Nepal Electricity Authority has forced Biratnagar Jute Mill to lose Rs 250,000 per day. The Mill has closed its operation due to shortage of power since last three days, as Republica reports.

The shortage of power is the most disturbing factor for the industrial sector. The government has to realize that the declining contribution of manufacturing sector in the gross domestic product (GDP) is, basically resulted by the lack of smooth supply of power in the industrial sector.

The Nepal Electricity Authority (NEA) has indicated that it will sign the power purchase agreements (PPAs) for super six projects with respective developers. The PPAs that were long in due to to unwillingness of the NEA had stalled the development of those projects.

A study team at the NEA has given go ahead to the government to sign PPAs with the developers for super-six projects, reports The Kathmandu Post. The hydropower projects in the super six are Singti (16 MW), Khare (24.1 MW), Upper Solu (23.5 MW), Lower Solu (82 MW), Maya Khola (14.9 MW) and Mewa Khola (50 MW).

The government has to speed up the process of developing transmission lines for evacuation of power from different parts of the country, produced by small, medium and large scale projects. Moreover, the NEA also has to work on signing PPAs with sugar mills that are long waiting to utilize the power that can be generated from their factories.