Indian firm admits shortfall in packaged fertilizer

Indian Potash Limited (IPL), a company partly owned by the Indian government, has admitted supplying to Nepal fertilizer bags that fell short of weight mentioned in the tags and has expressed commitment to compensate the loss.
The acknowledgement of mistakes was made by IPL through a letter written to the Ministry of Agriculture and Cooperatives (MoAC) which it received on Feb 15.
"This is to express our deep concern over complaints on supply of urea bags, which fell short of weight mentioned in the tags, and to reiterate our commitment to supply quality fertilizer," reads the first paragraph of the letter. IPL, in its letter, has also said technical reasons were to be blamed for the mistake.
Even after getting the letter from IPL, MoAC has formed a committee to investigate the matter. "A committee has been formed under the leadership of Uttam Bhattrai, joint secretary of the ministry,” Dr Hari Dahal, joint secretary and spokesperson of the ministry said. "The committee has already commenced its investigation."
Earlier, it was found that 41 percent of urea bags supplied by IPL fell short of the weight mentioned in the label. These bags -- which totaled 30,000 tons -- were supplied to state-owned Agriculture Inputs Company Ltd (AICL) of Nepal.
The MoAC has decided to hold IPL´s payment of over Rs 450 million -- equivalent to about 25 percent of the total bill -- until the problem is settled. "We have formed a team to further investigate the matter," Dr Dahal said, calling the incident "a result of irresponsibility and extreme carelessness of IPL".
IPL and AICL had signed a Memorandum of Understanding (MoU) on 8th of August 2011, which paved way for the supply of the fertilizer from India. IPL started to supply fertilizer from November 18.
"We started getting complaints after imports of 7,500 tons of fertilizer," Dr Dahal said on Thursday. He further added: "After getting complaints, we conducted a sample test. Out of 105 bags that were tested, 41 percent of the bags did not have the stipulated quantity of fertilizer."
Similarly, bags of fertilizer supplied by Metal and Mineral Trading Company (MMTC), a public enterprise under the Indian Ministry of Commerce, have also fallen short of the mentioned weight.
According to the MoAC, of the total of 2,500 tons of fertilizer supplied by the Indian company, few of the bags contained 500 grams to 10.5 kg less fertilizer.
"Regional office of AICL in Biratnagar carried out a sample test of 2,611 bags, of which 33 bags fell short of 1-3 kg of fertilizer, while 13 bags exceeded the weight mentioned in the label," Dr Dahal said in an interaction with media persons.

Nepal, India talks on railway agreement begins

Two-day talks between Nepal and India to review the bilateral Rail Service Agreement kicked off on Thursday with Nepali officials urging Indian officials to allow operations of all forms of railway cargo between Nepali inland container depots (ICDs) and integrated check posts (ICPs) and Indian ports.
“We held talks on agendas that were exchanged prior to the meeting. Talks are moving ahead positively,” said Naindra Prasad Upadhaya, joint secretary of the Ministry of Commerce and Supplies (MoCS), who is leading Nepali team in the negotiation.
He, however, refused to divulge the details.
On the first day, the two sides reached a broad understanding on opening all types of railway cargo. However, as the minute of the talks would be finalized on Friday only, officials said it would be premature to comment.
During the talks, Nepali side expressed dissatisfaction over poor performance of Container Corporation (Concur) of India while providing service to the Nepali traders.
Traders in recent years have been complaining that Concur has not been doing its jobs properly and this, in turn, has been compelling them to pay undue demurrage charges and bear other costs. As a result, the officials in the talks pushed India to either improve the service performance of Concur or allow private railway service providers to cater to the needs of Nepali traders.
They also urged India to open railway cargo services between all ICDs and ICPs of Nepal and all the Indian ports through which Nepal is authorized to carry out third country trade. The existing railway agreement presently limits such services between Birgunj ICD and Kolkata and Haldiya ports only.
If this agenda is endorsed, it will pave the way for Nepal to operate railway cargoes between every ICDs and ICPs in Nepal and newly assigned Vishakapatnam port. It will also enable the country to trade with Bangladesh via train through Rohanpur-Singabad railway network.

Railway pact review meeting starts Thursday

After deferring for well over two years, technical officials from Nepal and Indian are finally convening in the capital on Thursday for a two-day review meeting of Bilateral Rail Service Agreement, through which Nepal hopes to get all forms of rail cargo services operated between all inland container depots and Indian ports through which the country moves third country cargoes.
“Agendas for the meeting have already been finalized. We hope to conclude the meeting successfully,” Naindra Kumar Upadhaya, joint secretary of the MoCS told Republica.
The continued deferral to review the agreement, which was due for 2009, has limited the operations of Nepal´s inland container depot (ICD) in Birgunj. Nepal Freight Forwarders Association (NEFFA) has claimed the delay has inflicted the country a loss of around Rs 7.3 million each day since more than two years.
The meeting would review the progresses made after the review meeting that was held last in New Delhi in 2009. It will mainly focus on performance of Container Corporation (Concur) of India while providing service to the Nepali traders.
Traders in recent years have been complaining that Concur has not been doing its jobs properly and this, in turn, has been compelling them to pay undue demurrage charges and bear other costs.
Many containers had stranded in Kolkata port just a couple of weeks ago due to the negligence of Concur - Indian government-owned container handler. “Concur´s service has turned problematic of late. We will request India to correct it,” said one of the government officials participating in the meeting.
Though Upadhyaya refused to elaborate further, sources said Nepali officials in the meeting would push India to either improve the service performance of Concur or allow private railway service providers to cater to the needs of Nepali traders.
The meeting would also seek India to open railway cargo services between all ICDs and Integrated Check Posts (ICPs) of Nepal and all the Indian ports through which Nepal is authorized to carry out third country trade. The existing railway agreement presently limits such services between Birgunj ICD and Kolkata and Haldiya ports only.
“We also have an agenda on free exchange of open and flat track wagons from and to any ICDs and ICPs,” said the source. So far, India has opened operations of closed railway cargoes only.
If this agenda is endorsed, it will pave the way for Nepal to operate railway cargoes between every ICDs and ICPs in Nepal and newly assigned Vishakapatnam port. It will also enable the country to trade with Bangladesh via train through Rohanpur-Singabad railway network.

Global poverty has fallen: WB

Though food, fuel and financial crises over the past four years left sharp negative impacts on vulnerable populations, both the percentage of people living on less than $1.25 a day and number of poor have declined in every region of the developing world between 2005 and 2008, reads a latest report of the World Bank.
The across-the-board reduction in poverty over a three-year monitoring cycle marks a first drop since the bank began monitoring extreme poverty.
The WB estimates in 2008 said 1.28 billion people lived below $1.25 a day, which is equivalent to 22 percent of the population of the developing world. By contrast, in 1981, 1.94 billion people were living in extreme poverty.
The WB drew such conclusion based on over 850 household surveys done in nearly 130 countries. 2008 is the latest date for which a global figure has been calculated.
The report notes that the population living in extreme poverty in South Asia has fallen the most since 1981. According to the WB, the $1.25 a day poverty rate in the region has fallen from 61 percent of 1981 to 32.5 percent in 2005
The survey of the Bank on global poverty update says that the $1.25 a day poverty rate has fallen by more than half of its 1990 value by 2010. “This means, the global leaders at a macro level have achieved the Millennium Development Goal (MDG) target of halving poverty from its 1990 level before the 2015 deadline,” states a WB press statement.
Although the report acknowledges developing world of making a considerable progress in fighting extreme poverty, it cautions that the 663 million people, who moved above the poverty lines in the poorest countries, are still poor by the standards of middle- and high-income countries.
According to Martin Ravallion, director of the WB´s Research Group, at the current rate of progress, around 1 billion people would still live in extreme poverty in 2015.
The $1.25 poverty line is an average for the world´s poorest 10 to 20 countries. A higher line of $2 a day (the median poverty line for developing countries) reveals less progress versus $1.25 a day. “The number of people living below $2 per day between 1981 and 2008 dropped only modestly from 2.59 billion to 2.44 billion,” reads the statement.
The bank has expressed dissatisfaction over the compellation of 22 percent of people in developing countries to living on less than $1.25 a day and 42 percent with less than $2 a day. It has stressed the global leaders to increase their efforts to improve their situation.
“We need to continue attacking poverty on many fronts, from creating more and better jobs, to delivering better educational and health services and basic infrastructure, to protecting the vulnerable. And countries, particularly in low-income countries need to expand data collection and strengthen statistical capacity,” the statement quotes Jaime Saavedra, director of the WB´s Poverty Reduction and Equity Group as saying.
According to the statement, in East Asia and Pacific had about 14 percent of population living below $1.25 a day in 2008, whereas it was 77 percent in 1981. In China, 13 percent, or 173 million people, lived below $1.25 a day in 2008.
In the developing world outside China, the extreme-poverty rate was 25 percent in 2008, down from 41 percent in 1981 as per the WB statistics.

Investment Board efforts to tap Japanese investment

Investment Board, an investment promotion arm of the government, has approached the Japanese government and investors hoping to attract investments in infrastructure development, mining and agro-businesses in the Investment Year 2012/13.
Radhesh Pant, CEO of the board who visited Japan last week in this connection, said the Japanese investors had shown keen interest to investment in various sectors, including mining and agro-businesses.
“In fact, a team of Government of Japan along with representatives from the private sector is visiting Nepal soon to explore and identify the spaces for investment,” Pant told Republica.
Pant was in Japan last week on invitation of the Japanese government.
During the visit, Pant met with senior government officials, private sector representatives and investors who were interested in investing their money in Nepal.
He briefed them about the new policy changes and priorities of the government, mainly highlighting the improvement of investment climate in the country.
“Japanese investors were keen to invest in areas like mining and minerals, hydropower, infrastructure development, tourism and agribusiness sectors,” Pant said.
With senior Japanese officials, Pant discussed issues like mutual cooperation and bilateral trade. He even requested for the review of Japanese government´s loan facility to Nepal.
“Pant met with Michihiko Kano, Minister of Agriculture, Forestry and Fisheries (MoAFF) of Japan, to discuss areas of mutual cooperation, financial and technical assistance that Japanese government and investors could provide to help Nepal harness its potential,” a statement issued by the board said.
Pant had meetings with representatives from organizations like, Japan External Trade Organization (JETRO), Japan Chamber of Commerce and Industries (JCCI) and Japan Foreign Trade Council (JFTC) among others.
He also interacted with Nepali Diaspora, appealing them to invest more in Nepal.
The government hopes to bring in foreign investment totalling US$ 1 billion during Investment Year 2012/13, and the board has been assigned to help materialize this target.

Exports grow double-digit driven by garment, carpet rebound

Though labor unrest continues to trouble major industries, Nepali readymade garment and woolen carpet exporters managed to post more than 44 percent rise in exports. The healthy rise in garment and woolen carpet exports also made country´s total exports to grow by 11.2 percent over the first six months of the current fiscal year.
Nepal´s total exports over the first half of 2011/12 jumped to about Rs 36 billion, says a latest report of Nepal Rastra Bank. It was Rs 32.29 billion in the same period last year.  Although government officials tag readymade garment as a ´dying industry´, its exports to the third country markets soared by 44.5 percent and touched Rs 2.48 billion during the review period.
Exports of garment have increased to the European countries - mainly Spain, Germany, UK and France, according to Udaya Raj Pandey, president of Garment Association of Nepal (GAN). "We have got no new costumers, but our old clients are placing more demand," he told Republica.
As EU countries have provided zero tariff facility to Nepali products, exports of garment in the European market has increased in recent months. However, no such sign is visible in the US, which previously used to be the largest buyer of the product.
Despite such a healthy export growth, garment remained the country´s second largest export during the review period. Nepal´s largest export during the period was hand-knotted woolen carpet.
According to NRB statistics, exports of woolen carpet during the first six months of 2011/12 stood at Rs 3.36 billion, which was 44.2 percent higher as compared to export figures of same period of last year.
Pashmina - another prime export products - was the country´s third largest exports during the period. Nepal exported pashina products worth Rs 1.52 billion, a rise of 63.5 percent recorded in the same period last year.
Entrepreneurs like Kabindra Nath Thakur, president of Nepal Carpet Exporters Association, however, caution that present rise (in value terms) could be faulty because the central bank figure does not acknowledge some 8 percent rise in value of third country exports has come from depreciation of Nepali currency. "The actual growth in exports is lesser than what the NRB says," Thakur stated.
Irrespective of the situation, the rise in their exports income enabled the country to enjoy 6 percent rise in exports to overseas markets over the first six months. Exports to those markets had declined by a percent in the same period last year.
Likewise, rise in exports of products like zinc sheet (Rs 2.95 billion), textiles (Rs 2.37 billion), jute goods (Rs 2 billion) and polyester yarn (Rs 1.91 billion) helped the country expand its exports to India by almost 14 percent.
Despite encouraging export growth, NRB data shows the total export income for the period did not even suffice to finance import of petroleum products. According to NRB, Nepal imported petroleum products worth Rs 40.60 billion during the period. Gold (Rs 11.61 billion) was the country´s second largest import during the review period, flowed by vehicles and spare parts (Rs 9.45 billion), MS Billet (Rs 8.50 billion) and medicines (Rs 4.98 billion).
Thanks to their increased consumption - country´s imports increased by 16 percent and touched Rs 216.68 billion during the review period. Such higher rise in imports, meanwhile, widened the country´s trade deficit by about 18 percent to Rs 180.76 billion.

Nepal for operations of all types of rail cargo

REVIEW OF BILATERAL RAILWAY SERVICE AGREEMENT

Nepal and India are finally reviewing bilateral Railway Service Agreement (RSA) in March to pave the way for movement of rail cargo between any Inland Container Depots (ICDs) and Integrated Check Posts (ICPs) in Nepal and additional sea ports in India.
Naindra Prasad Upadhyay, joint secretary at the Ministry of Commerce and Supplies, said officials of the two countries are convening for the review in Kathmandu on March 1 and 2. He, however, refused to divulge details.
Officials of the two countries had met for review talks in New Delhi in 2009. Though nothing transpired during the meeting, they had agreed to hold follow up meeting in six months. But no such meeting was held over the past two years due to Indian apathy for the review of the agreement.
Reliable sources at the ministry said Nepal, during the meet, would seek India to expand movement of rail cargo to and from any ICDs in Nepal and agreed sea ports in India. The existing agreement signed in 2004 limits movement of bilateral rail cargo to Birgunj ICD and Indian ports of Kolkata and Haldia.
“As broad understanding to this connection was build during previous review meeting, we are confident that India will agree to our proposal,” said the source.
Nepali officials and private sector, including Federation of Nepalese Chambers of Commerce and Industry, have long been saying that unhindered movement of railway containers to any ICDs of Nepal from all assigned Indian ports was important to enhance the flow of overseas goods to Nepal.
Most importantly, such a revision was necessary if Nepal is to make use of and best utilize the newly agreed Indian port - Vishakapatnam - for third country trade. “The review is needed also if Nepal is to make use of Rohanpur-Singhbad railway route for trade with Bangladesh and other third countries,” said the source.
Currently, Birgunj ICD has been brought into operation to carry railway wagons from Kolkata and Haldia ports. Similarly, Birgunj ICP is expected to be operationalized from this year. Other ICPs in Biratnagar, Bhairahawa and Nepalgunj are under construction.
Nepal is also requesting India to allow operations of all types of rail cargos and containers under the reviewed RSA. Currently, RSA allows movement of closed cargo only. As a result of the delay in reviewing the agreement, Nepal has been left deprived of enjoying benefits of operations of bulk open cargo and refrigerated wagons.
“This is inflicting us a loss of around Rs 7.3 million each day since more than two years,” said Rajan Sharma, president of Nepal Freight Forwarders´ Association (NEFFA).
Nepali traders also complain that the Container Corporation (Concor) of India -- the Indian partner in the Himalayan Terminal that is managing the Birgunj ICD and also responsible for arranging containers -- has not been providing proper services. Referring to it, Sharma said freight forwarders have event suggested to the government to ask India to allow Nepali traders to take services from private rail service providers.
Apart from that, Nepal would also seek India to incorporate a provision of waiver of detention charge. It would also request India not to treat placement of trains as placement unless handling is possible.