Illegal Imports: An Impediment to Prosperity

Falgun 7, 2081

Shristi Dugad

Illegal Imports: An Impediment to Prosperity

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There is a huge gap between food demand and production in the country. We are dependent on imports for most of the food we consume. We are importing food from Vietnam, Turkey, America and other countries. There is also a situation where food products such as pulses and oil produced in Nepal have to be imported. Spices, cherries, olive oil etc. which are not produced in the country must be imported.

 

If the raw material is available, it can be produced in the country. We are dependent on imports even for goods that have the potential to be produced domestically. The main reason for this is not enough quality products. This does not mean that all products produced in the country are of poor quality. Quality goods are being produced in small quantities. 

If we compare prices, imported products are cheaper than domestic products. In other countries, the cost is reduced because the goods are produced in large quantities. But because it is produced in small quantities in Nepal, the cost is higher. This makes domestic production more expensive.

Emphasis should be placed on quality products to compete with imported goods. Also, if you produce in large quantities, you can compete with imported goods. As such, honey can be produced from the plains to the hills. Since honey has medicinal properties, its demand is equal in the country as well as abroad. Although the farmers have honey, they have not been able to sell it. In order to protect farmers' products, a policy of banning imports and ensuring the market should be adopted. 

In July of the current fiscal year, 60,000 youths left, but we don't have enough skilled manpower. Working age is 16 to 40 years. But the trend of young people leaving the country this year is increasing. Even young people do not want to take up agricultural profession. Their thinking is more focused on going abroad. Due to this, there is a shortage of skilled manpower. Therefore, it is necessary for the government to bring various policies to produce skilled manpower. 

It is not that there is no opportunity in Nepal, Nepali youth are working for American companies in the information and technology (IT) sector. Jobs are being created in IT in Nepal. There is potential in many areas including hydropower and modern agriculture. The demand for cardamom in the international market is increasing. Cardamom ranks first among the exports. But we are selling unprocessed cardamom.

Government should identify such items and proceed with priority. To prevent the youth, the government should teach them skills such as branding and identifying benefits. Young people are migrating abroad due to education and employment opportunities. They don't go abroad if they get the same opportunities and services in Nepal. The government has not been able to bring such policies. 

I studied in America. There was a good opportunity in America. I came back seeing some possibilities in Nepal. After returning from America, I started working in the food industry. Success comes only when you take on challenges and move forward. There are problems including open borders, low quality and stolen exports in importing food products in Nepal. 

We are importing legitimately. But open borders are encouraging illegal imports. Therefore, low-quality goods are imported through stolen exports. Legally imported goods have to compete with illegally imported goods.

Can't compete with goods that have evaded customs. Unable to regulate illegal imports, the government is losing revenue. It is necessary to revise the customs rate according to the time and international standards. A year and a half ago, when the government tightened, the illegal import was controlled. Now illegal import is increasing again.  Looking at

investments, bank interest rates are low. No liquidity problem. Now the production is more but there is no market. Therefore, the food market has been shrinking recently. Exports have a similar problem. Honey export to Japan is now closed. The government should take initiative to open up exports.

The government should create a comfortable environment for exporting to countries other than Japan. Government-to-government initiative is necessary in this regard. As the market declines, imports also decline. When the government increases taxes, small businesses face problems. The customs rate is the same for raw materials and finished goods. We cannot compete with finished goods when we import raw materials, produce them and send them to the market.

Shristi

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