In a significant trend for Nepal’s economy, the import of cereals has witnessed a notable decline during the first nine months of the fiscal year 2023/24. According to the latest trade data released by the Department of Customs, there has been a substantial decrease both in terms of monetary value and quantity, marking a shift in the nation’s import dynamics.
The statistics reveal a 15 per cent decrease in the monetary value of food imports during this period compared to the previous fiscal year, 2022/23. Similarly, the quantity of cereals imported has seen a decline of 19 per cent during the same timeframe, indicating a significant shift in trade patterns.
During the review period, Nepal imported approximately 789,962 tonnes of cereals valued at Rs. 37.14 billion, contrasting with the 972,629 tonnes valued at Rs. 43.61 billion imported during the first nine months of the previous fiscal year.
The notable decrease in paddy and rice imports has been a driving factor behind the overall decline in cereal imports. Import figures show a staggering 40 per cent drop in paddy and rice imports during this period compared to the corresponding period last year, amounting to about 334,279 tonnes worth Rs. 17.63 billion.
This decline in rice and paddy imports can be attributed to the significant increase in domestic paddy production, estimated at approximately 5.724 million tonnes by the Ministry of Agriculture and Livestock Development for the current year.
However, the import of wheat has seen a stark increase during the review period, with a notable surge of 360 per cent compared to the same period last fiscal year. Nepal imported 191,621 tonnes of wheat valued at Rs. 7.8 billion, a stark contrast to the 41,682 tonnes worth Rs. 1.83 million imported during the corresponding period of the previous fiscal year.
In contrast, the import of maize has experienced a modest 8 per cent decrease during the first nine months of the current fiscal year, amounting to 250,231 tonnes valued at Rs. 10.88 billion, compared to 280,106 tonnes worth Rs. 11.94 billion imported during the same period last fiscal year.
Furthermore, other cereals such as buckwheat, millet, and barley have also seen imports during the review period, amounting to 511 tonnes worth Rs. 34 million, 12,240 tonnes worth Rs. 603 million, and 563 tonnes worth Rs. 22 million, respectively.
This shift in cereal import trends reflects evolving dynamics in Nepal’s agricultural sector and trade landscape, indicating potential opportunities and challenges for domestic producers and businesses.
