Nepal: Rice prices on boil despite India removing export taxes

Despite India lifting the rice export ban and removing the export duty more than a month ago, prices in the domestic market have refused to come down. Most of Nepal’s city residents eat fine and long-grain rice imported from India and packaged in Nepal, as the country produces little of these expensive varieties. Nepali traders, however, say prices may cool down within a few weeks as paddy harvest has begun. Nepal imported rice and paddy worth Rs22 billion in the last fiscal year that ended mid-July, even though India imposed a ban on non-basmati rice exports in July 2023 to ensure the domestic supply and keep prices under control. In 2021-22, rice and paddy imports from India were worth Rs47.35 billion. Before that, in 2020-21, imports billed Rs50.48 billion. Immediately after India imposed the ban, the price of rice rose in Nepal by Rs200 to Rs250 per 25 kg bag. After projecting a bumper harvest, the ban was lifted on September 27, but the minimum export price was imposed. New ...