India removes 20 percent duty on paddy export to Nepal, but conditions apply

Kathmandu / Nov 2: India has set a quota on specific types of paddy while exporting the agricultural product to Nepal at zero duty.

Issuing a public notice on Monday, India’s Ministry of Finance announced to lift the 20 percent duty being imposed on a number of paddies to be exported to the landlocked country. India will be providing the facility on only up to 600,000 tons of paddy annually to be exported to Nepal.

However, the 20 percent export tax will be applicable on non-boiled rice and half-steamed rice. Similarly, the ban on export of broken rice to Nepal is still in place.

Since September 9, India had been imposing a 20 percent duty on export of all varieties of rice, except basmati and parboiled rice. This has triggered up the price of the essential in Nepali market.

After the restrictions from the Indian government, Nepali side has been requesting the southern neighbor to lift the ban and provision of export duty on rice, sugar and wheat.

Subodh Kumar Gupta, president of Birgunj Chamber of Commerce and Industry, said the quota that India has fixed on export of rice and paddy will be adequate for Nepal. According to him, the new provision will help reduce the price of essentials in the domestic market. Nepal imported 550,000 tons of paddy from India in the last fiscal year.