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The government has fixed the minimum support price of paddy for fiscal year 2023/24 much earlier this year compared to last year. 

The cabinet meeting held on July 11 fixed the minimum support price. The minimum support price of paddy has been set at Rs 3,198 per quintal for thick rice, which is Rs 231 higher than the previous fiscal year. Similarly, the minimum support price of medium rice has been fixed at Rs 3,362 per quintal, which is Rs 262 more than the previous fiscal year. 

Last year, the government had fixed the minimum support price for paddy in October. This delay compelled farmers to sell paddy at lower prices. As a result, many farmers couldn’t even recover their cost of production. Since government agencies such as the Food Management and Trading Company Ltd and the Farm Modernization Project also delayed paddy procurement, farmers were left with no option but to accept whatever prices the traders offered. 

As per the standard, the government should fix the minimum support price before the seedbed is prepared. Although the government fixed the support price during the paddy transplantation season, agriculture expert Krishna Prasad Poudel said it was still late. “The government should fix the minimum support price before the seedbed is prepared. Since spring paddy is transplanted in March, the price should be fixed a month before that,” Poudel said. “This would enable farmers to compare their cost of production with the prices offered and decide whether to cultivate paddy. If the returns are high, they would cultivate it in more areas.”

Prem Dangal, chairman of the National Farmers’ Commission, said the minimum support price would mean nothing until the government agrees to buy all the paddy that farmers grow. “The government agencies procured only 31,000 tons of paddy last year, although 2m tons of paddy are sold in the market every year,” Dangal added. “The government should make necessary preparations to procure all the paddy that farmers intend to sell. Otherwise, there is no point in fixing a minimum support price.” 

However, as the minimum support price fixed by the government is higher than the market price, government agencies have been facing difficulty in selling paddy procured from farmers. As a result, they procured paddy at a much later date last year.

Sharmila Neupane Subedi, the spokesperson for the Food Management and Trading Company Ltd, said they would soon issue a circular to all their subordinate offices to make necessary preparations for paddy procurement.

Although the government has prioritized girls' education, it has been failing to achieve the expected targets. Gender parity is a crucial aspect of inclusive education, but despite legal provisions, data shows that the goal has not been fully met. Additionally, despite introducing various programs to ensure 100 percent retention of female students, the government has not been able to get the expected success. Sabita Dangal, the director of the Center for Education and Human Resource Development (CEHRD), said girls' enrollment is still below the target. Speaking at the British Council Nepal's sixth educational conference, she noted that the target of 85 percent enrollment set for the 2022-23 academic year has not yet been achieved. According to CEHRD, the net enrollment rates for basic levels (Grades 1-5), (6-8), and (1-8) in the gender parity index is 0.99 as of January 2023. In the secondary level, the rates are 1.01 in (9-10), 0.93 in (11-12), and 0.98 in (9-12). Last year, the net enrollment rates for basic levels (1-5), (6-8), and (1-8) were 0.99, 0.98, and 0.99, respectively. In the secondary level, the rates were 1.01 in (9-10), 0.93 in (11-12), and 0.98 in (9-12). In the fiscal year 2021-2022, the enrollment rate of girls in basic levels (1-5) and (6-8) grades was 48 percent, while it was 49.3 percent in grades 9-10, 51.7 percent in grades 11-12, and 50.3 percent in grades 9-12. In the fiscal year before that, the enrollment rate for girls was 49.7 percent in grades 1-5, 49.9 percent in 6-8, and 49.7  percent in 1-8. Similarly, the enrollment rate of girls was 50 percent in grades 9-10, 53.4 percent in 11-12, and 51.3 percent in grades 9-12. Difficult to retain The government has introduced girl-friendly programs to improve retention rates. While there have been some positive results, the government's ultimate aim is to eliminate the problem altogether. Despite a high percentage of children having access to school enrollment (over 97 percent), issues with dropouts and repeat classes continue to complicate the issue of access to education. The retention rate for female students in Grade 8 was 76.6 percent in 2015-16, but has since improved to 83.5 percent, although still below the target of 97 percent. According to Dangal, the overall retention rate for female students is good. While the percentage of girls not enrolled in school was 10.6 percent in 2015-16, it has come down to 4.9 percent currently. The government had targeted to bring it down to zero. Several studies have identified various reasons for high dropout rates among female students, including having to care for younger siblings, child marriage, and high school fees. A study conducted by researcher Shudarshan Sigdel entitled 'The Situation of Girls in Marginalized Communities' also highlighted irregular attendance as a significant challenge. Chepangs make up about 44 percent of the population in Benighat Rorang Rural Municipality in Dhading district. The school enrollment of the Chepang community is 90 percent. However, the dropout rate among Chepang students is high. According to the study, the school dropout rate of Chepangs is around 40 percent all over the country. According to Talik Chepang, the assistant principal of Shankhadevi Secondary School, around 60 percent of students who drop out are female. The government has implemented scholarship programs for girls. According to CEHRD, the government has allocated a budget for scholarships for all girl students in Karnali. In the current fiscal year 2022-2023, the government has allocated Rs 656.8m to provide scholarships to 1.55m girls, which is a reduction of nearly Rs 50m from the previous fiscal year. The decrease in allocation may be due to the high school dropout rate among girls. In the previous fiscal year, there were 1.66m girl students in Karnali. Additionally, scholarships are provided to girls of other targeted groups at the basic level. Inclusive school reforms  According to the Consolidated Equity Strategy, 2014, inclusive education provides an opportunity for children from diverse backgrounds, abilities, and social and economic classes to learn together, respect each other, and appreciate their differences. Nepal has demonstrated its commitment to education for all, Millennium Development Goals, and Sustainable Development Goals through participation in various national and international programs and conferences. The constitution of Nepal mandates free and compulsory basic education, as well as free secondary education. Additionally, provisions have been made for free education for marginalized groups and people with disabilities. The constitution also guarantees the right to education in one's mother tongue and encourages the establishment of educational institutions by communities. The proportion of female teachers has also increased over the past seven years. According to Dangal, the proportion of female teachers in basic level has increased to 47.4 percent in 2021-2022 compared to 38.8 percent in 2015-2016. The government was looking to raise the proportion to 50 percent.  Similarly, the proportion has increased to 20.4 percent in secondary level from 14.1 percent in 2015-2016.    

The ramifications of Russia-Ukraine conflict are being seen in Nepali markets as well.

Prices of commodities and daily essentials have gone up as the war has disrupted global supply chains.

“Prices of foodstuffs have gone up by 10 to 25 percent while transport fares have also increased due to the fuel price hike—all due to the disruption of international supply chains,” says Vijay Singh Baidya, chairperson of the Trade Committee of Federation of Nepalese Chambers of Commerce and Industry.

If things do not soon normalize, goods that are being imported from Russia and Ukraine will have to be procured from other countries.

“For now Nepal has been maintaining its domestic supply chains with stocked goods, which are running out quickly,” says Baidya.

According to the Department of Customs, Nepal imported 45 kinds of goods worth over Rs14 billion from Ukraine in the first seven months of the current fiscal year. In the same period, 91 kinds of goods worth over Rs 4 billion were imported from Russia.

Nepal imports items ranging from vegetable oil, mustard seeds, coriander seeds, toiletries, metals, electronic goods and machinery components from these two countries.

With uncertainty around the war, Baidya says the only option for Nepal is to import these goods from other countries.

Nepal should also consider the price hikes in other items that are indirectly imported from Ukraine and Russia—mainly wheat and petroleum products. The ongoing war has already threatened the global supply of goods like wheat, petroleum and sunflower oil.

“Nepal should have a contingency plan for import of goods it can no longer buy from the two countries,” says Punya Bikram Khadka, information officer at the Department of Customs.

So long as the war continues, continued global price hikes seem inevitable, largely due to the imminent shortage of oil.

Economist Poshraj Pandey says Russia, the world’s second largest oil exporter, has been unable to ship petroleum goods to the international market due to economic sanctions.

“Russia used to sell 5.5 million barrels of oil a day, but now that shipment has largely stopped. This has led to a shortage of oil in the international market, pushing up the price,” he says.

Rise in fuel prices will also increase transport fares, which then drives up the cost of other goods.

Pandey says more than 40 percent of consumable goods in Nepal are imported.

“Prices of goods will continue to go up with the rise in the costs of petroleum products,” he says.

The government has decided to provide cash relief of up to 65 percent of the production cost to farmers whose crops were completely damaged by unseasonal rains earlier this year.

The government made the announcement as per the new guidelines to provide relief to farmers. The guidelines, which were approved by the Council of Ministers on November 18, mention that a farmer shall not get more than Rs 55,000 in relief.

The government has allocated relief for farmers by categorizing them into small, medium, and big categories based on their landholding. While providing relief, the amount will be calculated based on the minimum support price of paddy.

According to the guidelines, small farmers who have suffered a complete loss will get relief up to 65 percent of the production cost. The government is ready to provide 30 percent relief to affected medium-scale farmers and up to 20 percent for big farmers. Likewise, the government will provide relief up to 20 percent of the production cost to large, medium, or small farmers whose paddy crop has been partially damaged.

Under the guidelines, farmers with more than three bighas (five acres) of land have been classified as big farmers. Farmers who cultivate other people’s land equal to the same area are also included in the category. Medium farmers are those who have more than 10 katthas (0.83 acres) and up to three bighas of land and cultivate on the same land. A farmer who cultivates up to 10 katthas (0.83 acres) of land has been classified as a small farmer.

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In the case of joint cultivation, the guidelines mention, the relief amount will be calculated treating the whole group as one. This facility will not be available for farmers using encroached land, and those who have already received relief from other agencies, including insurance companies.

Before providing relief as per the guidelines, the local government shall collate data of the damage caused to the paddy crop due to unseasonal rains based on information collected by the District Administration Office, District Police Office, and other agencies. The ward office shall then publish a notice for affected farmers to provide documentary evidence to support their claims.

In case of failure to submit the documents, the farmer should submit the recommendation of the ward office endorsed by a ward member and three neighbor farmers. Along with the evidence, a copy of the farmer’s citizenship, and bank account details should also be submitted.

Based on the details provided, the government will deposit the relief amount in the bank account of the concerned farmer.

According to the guidelines, a three-member monitoring committee will be formed under the coordination of the head of the district coordination committee to monitor the distribution of relief.

According to the Ministry of Agriculture and Livestock Development, 325,258 metric tonnes of paddy worth Rs 8.268 billion have been destroyed due to unseasonal rains earlier this year. The ministry states that the paddy crop planted in an area of ​​85,580 hectares has been completely damaged. Paddy plantation on ​​285,076 hectares was partially damaged.