Despite the Department of Commerce and Consumer Protection allocating 200,000 tons of India's wheat quota to Nepali industrialists, uncertainty remains over whether all allocated wheat will be imported.
The department has approved 41 commercial establishments to import 90,000 tons, 36 industries to import 100,000 tons, and the state-owned Salt Trading Corporation Limited to import 10,000 tons of wheat. However, only 30 out of 41 commercial firms have shown interest in importing wheat and initiated agreements with the department. These traders have demanded amendments to the provision requiring wheat imports within three months and full payment before shipment.
Dinesh Rathi, a businessman from Biratnagar, stated that although he received a wheat quota, he withdrew from the process due to its complexity and numerous conditions. "We traders do business to earn a profit, but with local wheat soon entering the market, ordering from India would tie up our money. Even after paying in full, what if the wheat does not arrive on time?" he questioned.
The department requires traders to complete their wheat imports by mid-June, though this deadline does not apply to industries. Traders, however, are pushing for an extension until mid-December. Nepali wheat farmers typically bring their harvest to market between mid-April and mid-June.
Bikash Begwani, central vice-president of the Nepal Flour Mill Association, warned that the arrival of 200,000 tons of wheat under the Indian quota during this period could force local farmers to sell at lower prices. Meanwhile, industrialists argue that they are being compelled to buy Indian wheat at a higher price than domestic wheat and that an extended import timeline would be more feasible.
Kumud Dugad, president of the Nepal Flour Mill Association, raised concerns over whether India's National Cooperative Export Limited (NCEL) would supply the wheat, pointing out that the company had previously received a quota of 95,000 metric tons of rice but had not exported a single grain to Nepal. He criticized the system, stating that NCEL acts as an intermediary by charging commissions from wheat exporters, leading to price fluctuations.
Dugad also questioned the department’s advance payment requirement without quality assurance. "There is no guarantee of good-quality wheat under these conditions, and if substandard wheat arrives, who will take responsibility?" he asked. He suggested that Nepal should directly deal with an Indian government non-profit entity and allow payments only after delivery.
Under the current process, Nepali industrialists must pay 10% in advance to NCEL, which then calls for tenders to export wheat to Nepal. The remaining 90% must be paid before shipment. The wheat will be priced based on prevailing rates at the time of import, with transportation costs included in the tender. However, customs duties in Nepal will be borne by importers, Begwani explained.
Of the 46 flour mills affiliated with the Nepal Flour Mill Association, 36 have begun the import process. The department has allocated quotas to these industries based on their previous year’s production capacity.