Need for farmer-industry friendly policy

Falgun 7, 2081

Saket Sanghai

Need for farmer-industry friendly policy

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Despite the potential of food production in Nepal, it has to depend on India. Most of the rice and pulses are imported from India. We are running a trade deficit, because imports of food items are more than exports. The demand for food is increasing, that's why we have to import it.

Soybean oil is exported to India. Soybeans imported as raw materials from third countries are refined here and sent to India after 'value add'. There is only one reason for exports, India increasing import duty. 

6 percent duty is levied on import of paddy and 9 percent on import of rice. However, it is difficult to compete with rice imported at 9 percent customs when selling rice with the cost, interest, cost and profit after importing rice. Paddy and rice should be sold at a margin of 4 percent after deducting all expenses. It would be good for the domestic industry to increase rice production in the country. However, there is official data that rice production has increased recently. But still not enough.

Imports are necessary to meet the demand. Therefore, the government should subsidize farmers to increase rice production. In India, the produce is also cheaper as the farmers get a lot of subsidies. Farmers are not subsidized with us. Government policy could not be farmer-friendly. Now there is an unstable policy for agriculture, now a stable policy is needed, so that production increases. This requires a coordinating role between the government, farmers and workers. 

The government should help introduce new technology in agriculture. But now that is not the case. There are skilled workers in the food sector, but what should be on the label is not there. Terai has many industries, production takes place there. But most of the workers are Indians. The government should think about returning the Nepali youth who are abroad. Industries here should also help in the production of manpower. As the number of industries increases, the demand for manpower also increases. 

Looking at the market situation for the past two years, there is a crisis in the local business. It's recession time. Industry has no money. There is no money to pay employees. Therefore, it is necessary for the government's policy to be stable. The economy should be 'boosted' by introducing policies that support local industries. Jobs should be created. If the industry has good production, they can pay wages to the employees.

Today only money motivates employees. If the employees get good salary service facilities, they are automatically motivated towards work. Well-paid young people don't go abroad. No youth wants to leave their country. No Nepalese will go abroad if they can solve the current problem from the 'root'. 

There are more than 100 rice industries in Nepal alone, but competition in the market is not good. There is a 'war' in the price of food. Due to its dependence on India, any small change in the Indian market will have an impact here. Talking about oil, India has increased the import tax. As a result, exports to India have increased. India lowers customs duties and exports fall. Because India imports from other countries increases. Same is the case with rice. If the export of rice is stopped, the industry cannot run in Nepal. Rice comes from India. So there is a problem even when we depend on India. 

The laws of the Nepal government are also not appropriate for all industries. It is forced to compete with Indian producers with a difference of 4 percent. An advance income tax was also levied on paddy this year. Dal also had 10 percent. Now it has reduced to 2.5 percent. It also did 2.5 percent in rice. In this situation, how can there be fair competition between traders and industrialists? There were many problems for the industry. The government had to think about it. Industry does not belong to one person only. 50 families depend on the industry. Households run on industry money. Although there is no investment problem recently, it is important to clarify the government's policy.  There is no lack of liquidity in the

market. Everyone has money in the bank. Interest rates have fallen. That's why there is no problem now. But the government policy needs to be farmer and industry friendly. Government and policy changes cause many problems. One government brings one type of budget, when another government changes, the policy changes. Again the zero label works. It also affects businessmen. Investments in the long run are also discouraged. Attracting FDI is a problem. Don't want to invest. Therefore, political stability is necessary. What is needed in the country, how to make the country, needs a vision. 

There is potential in the food sector in the next 5/10 years. Food is an evergreen field. For that, the government should bring policies to encourage agriculture. The government also had to invest in the agro industry. It is necessary to promote local industry. With increased investment in agriculture, the food industry is automatically promoted. At the same time, the government's role in producing skilled manpower remains important. The government should act accordingly. There is a lot going on when it comes to startups. Good work has been done by the Federation of Commerce and Industry and the Confederation of Industries. A startup committee has also been formed. It is necessary to cooperate with the government as well as the private sector. 

Saket

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