Nepal Rice Imports from India Increase About 36% y/y to $128 Million in
First Eight Months of FY 2015-16, Says NRB Report
Apr 25, 2016
Nepal's rice imports
from India increased about 36% y/y to around Rs.31.43 billion (around $128
million) in the first eight months of FY 2015-16 (August 2015 - March 2016),
from around Rs.9.91 billion (around $94 million) during the same period last
year, according to Kathmandu Post citing a report from the Nepal Rastra Bank
(NRB).
The rice imports have
increased significantly due to an imbalance between the production and
consumption patterns in the country, according to the Deputy Director General
at the Central Bureau of Statistics (CBS). “Irrigation, inputs and manpower are
extremely important for food production. We lack of all these resources. Hence,
the imbalance between production and consumption has been growing every year,”
he said.
According to the
report, imports of most of the other commodities from India have dropped due to
a six-month trade embargo since September 2015. However, rice imports have
risen due to a decline in paddy rice production by about 5.1% to around 4.78
million tons in FY 2014-15 (August - July) following a late monsoon and
untimely rainfall. The official is expecting imports of rice and other food
items to increase further in the coming months as the winter crop harvest is
likely to decline significantly.
The NRB report,
however, shows that imports have not impacted rice prices in the country.
Normally, a drop in
paddy production in Nepal is offset by imports from India. However, the
on-going drought in many rice growing parts of India is likely to affect its
winter/rabi crops, including rice. The report predicts that the situation in
India may impact food security in Nepal.
One of the country's
leading agro scientists noted that India had enforced a trade ban on several
key food items to Nepal during the food crisis in 2007-08.“The episode could
repeat again amid reports that farmers in India are likely to suffer crop
losses due to drought and water shortage. The government should be proactive to
maintain sufficient food stock so that India’s food exports ban will not affect
Nepal,” he said.
Nepal reportedly
imported rice worth Rs.24.75 billion (around $231 million) in the fiscal year
2014-15 (August - July), up about 43% from around Rs.17.26 billion (around $161
million) during FY 2013-14.
Central Bank of Nigeria Provides $25 Million Loans to Rice Farmers to Help
Boost Production
Apr 25, 2016
The Central Bank of
Nigeria (CBN) has provided a loan of around 4.9 billion (around $25 million) to
rice farmers under its anchor borrower program, according to www.punchng.com quoting the CBN Governor.
The CBN Governor told
reporters that the anchor borrower program is aimed at increasing agricultural
output of rice and wheat as well as reducing the gap between production and
consumption.
Under the program,
rice farmers will be provided loans ranging from N150,000 (around $754) to
N250,000 (around $1,256) to assist them in procuring necessary agricultural
inputs like seedlings, fertilizers, pesticides as well as to help boost
agricultural outputs and productivity, according to the CBN Governor.
The program was
started by the CBN Governor in Kebbi State, where a total of 78,581 farmers
were provided with a loan of N 210,000 (around $1,055) each. They are
reportedly expected to produce a total of one million tons of rice this year.
The success of the program in Kebbi State would be encouraging for farmers across
the country, he said.
The Governor noted
that the CBN has set aside around N 40 billion (around $201 million) from the N
220 billion (around $1.1 billion) Micro Small and Medium Enterprises
Development Fund, which is set up to provide loans to farmers at single digit
interest rate.
He has been promoting
an increase in local rice production to reduce burden on the country’s
foreign exchange reserves and Naira.
Apr 25, 2016
The government of
Bangladesh has decided to procure around 1.3 million tons of paddy and rice
during the 2016 Boro (January - May) harvest season, local sources quoted the
Food Minister.
Talking to journalists
after a meeting of food planning and monitoring committee at the secretariat on
April 24, the Food Minister noted that the government will procure the Boro
rice between May 5 to August 31, 2016.
Of the 1.3 million
tons, the government will reportedly purchase 700,000 tons of paddy directly
from farmers at Tk 23 per kilogram (around $300 per ton) and the remaining
600,000 tons of rice from millers at Tk 32 per kilogram (around $417 per ton).
The cost of production of paddy and rice is estimated at around Tk 20.70 per kilogram
(around $270 per ton) and Tk 29 per kilogram (around $378 per ton)
respectively.
The Minister noted
that every year, the government procures more rice compared to paddy but this
year they have planned to procure more paddy to support farmers. Last year, the
government procured 100,000 tons of paddy and one million tons of Boro rice.
As of April 24, 2016,
the government held 1.1 million tons of rice and paddy in stocks against a
total capacity of 2 million tons. The Food Minister reportedly assured that
there would not be any storage problem for the procured rice and paddy.
Meanwhile, the
officials of the Bangladesh Bureau of Statistics (BBS) noted that 2015-16 (July
- June) Aman (July - December) paddy rice output reached around 13.5 million
tons, up from last year's 13.2 million tons due to increased plantation of
high-yielding varieties. Aman accounts for 38% of the country's annual rice
production. The government is reportedly aiming to achieve an output of 2.28
million tons from Aus (February - August) and 19 million tons from Boro crops.
However, officials are
expecting boro production target may not be achieved as planting declined after
many farmers switched to other crops such as wheat and potato. The 2015-16 boro
acreage is stands at around 4.685 million hectares compared to last year's 4.8
million hectares.
Separately, the
government is planning to impose a 10% supplementary duty on top of the 20%
tariff on rice imports to support market prices during Boro harvest.
USDA forecasts
Bangladesh’s MY 2015-16 (July 2015 – June 2016) milled rice production at
around 34.5 million tons, unchanged from MY 2014-15. It forecasts Bangladesh to
import around 350,000 tons of rice in MY 2015-16 compared to an estimated 1.2
million tons in MY 2014-15.
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