The import of paddy and rice into Nepal has surged by 90% over the past six months, leading to a decrease in market prices, according to stakeholders.

Data from the Department of Customs reveals that by mid-January of the previous fiscal year 2023/24, Nepal had imported 187,000 metric tons of paddy and rice valued at NPR 10.14 billion. In the corresponding period of the current fiscal year, imports nearly doubled to 381,000 metric tons worth NPR 19.09 billion.

Vibhor Agrawal, a member of the Nepal Rice, Oil, and Pulses Industry Association, informed New Business Age that increased imports from India have boosted rice supply in the Nepali market, resulting in price reductions. He noted that the prices of different varieties of rice have decreased by up to NPR 150 per sack.

"At the beginning of the current fiscal year, we sold a 25-kg sack of rice for an average of NPR 2,175. However, now that price has come down to NPR 2035," Agrawal stated. He also mentioned that during this period, the price of paddy imported by industrialists from India increased from NPR 4,423 per quintal to NPR 4,600.

Additionally, the arrival of newly harvested paddy in the market has contributed to the price decline. According to the Ministry of Agriculture and Livestock Development, Nepal produced 5,955,476 metric tons of paddy this year, an increase of 231,242 metric tons from the previous year's production of 5,724,234 metric tons.

The Indian government had implemented various restrictions on rice exports since 2023 to ensure adequate domestic supply after prices surged in the local market.

However, during last October, the Indian government removed the export duty on parboiled rice. Prior to that, the export duty on parboiled rice was reduced from 20% to 10% in September to boost exports. A few months ago, India also lifted the minimum export price imposed on basmati and non-basmati rice.

Basanta Shrestha, treasurer of the Retail Trade Association, confirmed that retail rice prices have decreased by up to NPR 150 per bag. He attributed this decline to reduced prices from wholesalers and industries.

According to the association, the price of steam jeera masino rice, which was NPR 2,500 per 25-kg bag in mid-January last year, has now decreased to NPR 2,375. Similarly, the price of steam sona mansuli rice has dropped from NPR 2,125 to NPR 2,000 per bag.