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.

Govt opens rice export with quantitative restriction

The government has lifted a four-year-old ban on rice export paving the way for the country to export of upto 10,000 tons of rice from the two customs points - Rasuwa and Tatopani - to China.
Initially, Ministry of Commerce and Supplies and Ministry of Agriculture Development (MoAD) had proposed that export be opened for 50,000 tons of rice from those customs for this year. But the Office of the Prime Minister and Council of Ministers (OPMCM) lowered the export ceiling when it issued the final decision.
“Traders can now export 5,000 tons of rice from each of the two customs points,” commerce secretary Lal Mani Joshi told Republica on Tuesday. “Prime Minister Babu Ram Bhattarai declined to approve export of 50 thousand tons of rice, citing the rising price of food in the domestic market.”
Officials said the amount of export opened was too little for farmers to enjoy better price for their produces.
According to MoAD, the country enjoyed food surplus of 443,000 tons in the fiscal year 2010/11. It has forecast a food surplus of about 800,000 tons for previous fiscal year 2011/12, of which 300,000 tons will comprise rice.
The preliminary estimation of crops production of MoAD shows that paddy reached 9.45 million tons in the fiscal year 2011/12, up 9.8 percent compared to the previous fiscal year and 21.8 percent compared to the fiscal year 2009/10.
“It might lead to unintended consequences,” Joshi said. “Opening export of rice in a large quantity might result in shortage of food in the domestic market.” The government´s decision to lift up the ban has been published in the gazette this week.
The Department of Commerce and Supply Management (DoCSM) is preparing to provide license to the traders. “Traders have to apply to get the license for export of rice and the DoCSM will make a decision to provide license with quota restriction for them to export,” Joshi said.

Govt set to reopen rice exports

Farmers complaining about low price of rice in the market will soon have a reason to rejoice. The government is preparing to lift up the ban on exports of rice imposed since 2008 owing to low production.

The Ministry of Agriculture Development (MoAD) has said it will allow export of up to 100,000 tons of rice from the next fiscal year which begins from mid-July.

The Ministry of Commerce and Supplies (MoCS) has said it will open up two customs points -- Tatopani and Rasuwa -- for rice exports. But it has yet to fix the exact quantity that would be allowed to be shipped out of the country.

"Although the MoAD has okayed exports of 100,000 tons of rice, we are planning to limit it to 50,000 tons for now," Lal Mani Joshi, secretary at the MoCS, said. "The decision has to be approved by the Prime Minister´s Office."

At present, the government has decided to open only two border points, Tatopani and Rasuwa, for exports as these areas were hubs for illegal exports of rice. "We hope this step will control smuggling of rice," the official said, adding, “Opening up of customs points for legal exports will also ensure that farmers will get higher returns for their products.”

According to MoAD statistics, the country enjoyed food surplus of 443,000 tons in the fiscal year 2010/11. It has forecast a food surplus of about 800,000 tons for this fiscal year, of which 300,000 tons will comprise rice, the statistics show.

The preliminary estimation of crops production of MoAD shows that paddy production reached 9.45 million tons this fiscal year, up 9.8 percent compared to the last fiscal and 21.8 percent compared to the fiscal year 2009/10.

Despite surplus paddy production, the government is reluctant to open up exports of rice from other customs points citing unethical behavior of traders.

"There is a risk in opening rice exports from other customs points," an official at the MoAD said. "Bangladesh has a huge demand of rice of almost 1 million tons that might lead us to another trouble." The official´s statement stems from the fear that Nepali traders re-export rice imported from India to Bangladesh.