Above 60 firms apply for rice export to China

More than 60 firms have registered expression of interest to export rice to China via Rasuwa and Tatopani customs after the government lifted ban on rice exports, allowing traders to export up to 5,000 tons from each customs points to the northern neighbor.
“The number of applicants is much higher than what we had expected,” said Narayan Prasad Bidari, director general of the Department of Commerce and Supply Management (DoCSM).
The cabinet meeting held a couple of weeks ago lifted ban on rice export. The government had banned rice exports in 2008. The government lifted the ban after the country started enjoying surplus of rice in the domestic market.
According to the Ministry of Agricultural Development, the country enjoyed food surplus of 443,000 tons in fiscal year 2010/11. It had forecast a food surplus of about 800,000 tons for previous 2011/12, of which 300,000 tons will comprise rice, the statistics show.
The preliminary estimation of crops production shows total paddy production was recorded at 9.45 million tons in 2011/12, up 9.8 percent compared to the previous fiscal year and 21.8 percent compared to 2009/10.
The DoCSM, which is entrusted to regulate the market and manage supply, has decided to give permission to all the applicants. According to Bidari, first 10 firms will get permission to export up to 200 tons. Similarly, another 20 firms will get permission for up to 100 tons and rest of the 6,000 tons will be divided among all the applicants.
“At present, we are screening the firms to ascertain whether they are eligible for cross border trade,” Bidari told Republica on Wednesday. According to him, the department will issue export permissions to firms by August 5.
Though the Ministry of Commerce and Supply (MoCS) had recommended allowing export up to 50,000 tons of rice, the cabinet has allowed exports of just 10,000 tons.