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The price of rice, Nepal’s staple food, is escalating in the domestic market right after India announced a global ban on the export of all varieties of rice, save the Basmati. The move from New Delhi came after Russia announced its withdrawal from the Black Sea Grain Deal in the midst of the Ukraine war, straining a war-hit supply system and aggravating the global food crisis. 

Despite hints that the ban may not apply to Nepal and the government’s assurance that there’s enough stock to last three months after which a new harvest season will begin, panic buying has been going unabated and the traders have been making hay. 

In a very short span of time, traders have raised the prices of different varieties of rice by more than 16 percent in the domestic market.

“When I inquired about the price of a 25 kg rice sack some days ago, the shopkeeper said Rs 2,300. But when I visited the shop the next day, the price had already increased by Rs 200. The shopkeeper said the price would rise further as he was running out of stock. That’s why I bought two sacks of rice,” said Parbati Dahal, a resident of Naya Thimi.

Many more customers like Dahal are opting for panic buying, fearing the unavailability of rice in the market in the coming days. But the government officials say there is no reason to panic. 

“We have food grains for three months at least. The new paddy will be ready in October-November,” says Gajendra Kumar Thakur, director-general at the Department of Commerce, Supplies and Consumer Protection.

In response to increasing complaints from consumers about the price hike, government authorities have a readymade answer: “We have been monitoring the market daily.”

Thakur says it is difficult to immediately find out whether there is black marketeering going on, as people get their foodstuffs from wholesalers, distributors and retailers. 

“We have been collecting data from the market and analyzing them. The reported price hike is under investigation,” adds Thakur.

The department has requested consumers to lodge complaints against price gouging by calling at its two numbers: 5343939 and 5347992.  

India has imposed a ban on the export of non-Basmati rice across the globe despite objections from the international community. The export policy of non-Basmati white rice, semi milled or wholly milled rice, whether or not polished or glazed, is amended from “free to prohibited,” according to a notification from the Directorate General of Foreign Trade.

According to one official, discussions are underway with the Indian government to exempt Nepal from the ban list. 

The Indian rice ban has also affected the prices of Nepali rice. Dev Kumar Shrestha, who runs a rice mill at Lagankhel, Lalitpur, says as this is an off-season for rice production, it is usually normal for the prices to go up during this time. But he does admit that the hike rates have been unreasonable after the Indian ban of rice export.   

“Big traders who are in power and are making huge profits by causing an artificial crisis,” says Shrestha. “When they raise the price, we too have to buy at an increased rate, which has caused the price increase.”   

Shrestha says since India has not banned the export of Basmati rice, high quality rice including long grain, Basmati rice should be easily available. “There is an ample supply of low quality rice, only the middle quality rice varieties are hard to get. Still, there is a panic among consumers.”

Some shopkeepers have stopped ordering rice because they are finding it difficult to sell them due to the price hike. Fanindra Shrestha, a grocer from Buddhanagar, Kathmandu, is one of them. He says the customers who visit his shop return empty handed after hearing the new price list of the rice varieties.  

“I cannot convince them, so I thought it is best not to order more rice because my customers are not going to buy them,” says Fanindra.

When there is a price hike of any goods in the market, it affects the consumers and eventually the supply chain. Those with purchasing power can buy and hoard any amount of goods that are in short supply, whereas the poor consumers cannot afford them. 

Market experts warn this could create an imbalance in the demand and supply, upsetting the market.

Several traders and experts that ApEx spoke with suggest that the government needs to come up with a long-term solution to address the issue, as this is not the first time the country has experienced such a scenario. They say that the government should take the initiative to make Nepal self-reliant when it comes to essential food items including rice. 

“We must increase our domestic rice production,” says Shrestha, the rice mill owner from Lagankhel. “By doing so we will no longer be dependent on foreign countries for rice.”

Ram Prabodh Chaudhary (60) of Matihani-3 in Mahottari prepared the seedbed twice. However, his two-bigha field still remains barren. “We haven't had any rainfall this season. I’ve fed seedlings to the cattle twice. I’m fearing famine,” he said.

Chaudhary has been earning his livelihood by cultivating paddy. “What can I feed my family now?” Chaudhary said, showing his barren paddy fields. Chaudhary is not the only one affected by drought. Most families in Madhes are facing the same situation.

Paddy transplantation is not gaining momentum in most districts of Madhes due to low rainfall. The situation is so dire that the Disaster Risk Reduction Management Committee demanded on Friday that the government declare Mahottari a ‘drought-hit region’ and provide relief for local people.

Transplantation progress at 60 percent

Roshan Kumar Mehta, the spokesperson for the Agriculture Directorate of Madhes Province, stated that out of 401,650 hectares of paddy fields in the eight districts of Madhes Province, paddy transplantation has been completed on only 242,507 hectares, which is only about 60 percent.

Paddy transplantation has only been completed in fields that have irrigation facilities. According to Mehta, transplantation hasn’t been done in fields that depend on monsoon rains. Even the transplanted seedlings are drying up. Water flow in irrigation canals has also reduced. Agriculture experts predict a significant decline in paddy output in the province this year.

Farmers are calling for the entire province to be declared a ‘drought-hit region’. Most of the 1,156,715 households in Madhes Province depend on agriculture. Since paddy production has been affected by drought, they are facing the threat of famine.

“This is only the second time in my life that I’m experiencing a drought. Water flow in canals has reduced, paddy seedlings are drying up. Paddy transplantation hasn’t even been done in the first week of August,” said Ram Bahadur Mandal (71) of Matihani-7. “What can we feed our families?”

Paddy is the major food crop in Madhes. “I experienced a similar drought 25 years ago. We are facing it again,” Mandal said. “I prepared the seedbed a second time after the seedlings dried up due to lack of rain. Now, once again, the seedlings have started to dry up.”

Mandal attributes the lack of rainfall in Madhes to environmental destruction. “You won’t get rain if you cut down trees,” he added. Chure expert Dr Bijay Kumar Singh explained that excessive exploitation of Chure for construction materials has damaged water sources. “This is just the beginning. Life in Madhes is impossible without preserving Chure,” he added.

Bharat Mandal, a 70-year-old rickshaw puller from Matihani-7, is finding it difficult to work due to excessive heat. “Until three decades ago, we used to export rice, lentils, maize, and other food grains to India from Madhes. But now we are facing famine,” he said. “This is all because of excessive exploitation of nature. People have destroyed rivers and forests. Population rise is another problem.”

Paddy seedlings are rapidly drying up in cultivated fields. Farmers have been unable to irrigate their crops adequately as water flow in canals has decreased. Wells are also drying up. About 90 percent of water sources in Birgunj, Janakpur, and Jaleshwar have already dried up.

Data from the Agriculture Directorate paints a grim picture of paddy transplantation. “The progress in paddy transplantation in Mahottari stands at 20 percent, while it’s 31 percent in Dhanusha and 57 percent in Sarlahi,” Mehta said. “Since the water level in rivers originating in Chure has dropped, even paddy fields under the coverage of Koshi, Kamala, and Bagmati irrigation projects are not receiving sufficient water. The same is the case in the coverage area of Ganak Canal in Parsa,” Mehta said. Mahat said many farmers haven’t been able to transplant paddy, while cracks have started to appear in cultivated fields due to lack of sufficient water.

Call to declare Madhes ‘drought-hit zone’

Data from the Directorate of Agriculture shows the condition of rice cultivation is critical in Mahottari, Dhanusha, and Sarlahi. Mehta said that paddy transplantation has been completed on only 20 percent of fields in Mahottari, 31 percent in Dhanusha, and 57 percent in Sarlahi. “Fields cultivated after sporadic rains and using irrigated water are drying up due to drought,” he added. According to him, the low water level of the rivers flowing through the Chure region has led to insufficient irrigation in the command areas of Koshi, Kamala, and Bagmati River Irrigation Project. There is a similar problem in the command area of Gandak Canal in Parsa.

A search operation has been reportedly intensified for those people who went missing in a landslide at Gaurikunda of Rudraprayag in Uttarakhand State of India four days ago.

The landslide swept away three hotels owned by Nepalis in the area.

The Indian Police earlier retrieved three bodies from the landslide debris.

The deceased have been identified as Tek Bahadur Kami, Prakash Kami and Devi Kami of Manma, Kalikot district.

According to the Embassy of Nepal in New Delhi, India, 11 Nepalis are still missing in the disaster and two others are suspected missing.

Nepal Police Senior Superintendent of Police Uma Prasad Chaturvedi from the embassy said that the Indian security has mobilized trained dogs to search for the missing persons.

The embassy is closely coordinating with the Indian authorities to support the rescue efforts.

However, the ongoing heavy rainfall and rising water levels in the Mandakini River are making rescue operations challenging.

SSP Chaturvedi said that Minister for Foreign Affairs NP Saud has already talked to Uttarakhand Chief Minister Pushkar Singh Dhami and other officials there, requesting to expedite the rescue efforts.

A noticeable number of Nepali people have been residing in the area as horse ride operators, hoteliers and workers for a long time.

All those missing are from Jumla, the embassy said

Over the past few years, Nepal has witnessed a significant surge in the number of students opting to pursue higher education abroad, particularly in countries like the United States, Australia, and the United Kingdom, among other popular destinations. This article delves into the reasons behind this growing trend, analyzing the factors that drive Nepali students to seek educational opportunities overseas. By examining relevant statistics and facts, the aim is to shed light on the underlying motivations that have reshaped the higher education landscape in Nepal.

Quality of education

One of the primary factors driving this interest in studying abroad is the perceived higher quality of education offered by renowned international institutions. Many students believe that attending colleges overseas would provide them with a more comprehensive and globally recognized education, preparing them for the competitive global job market. According to research conducted by the Ministry of Education, approximately 65 percent of students seeking higher education abroad cite improved academic facilities and resources as their main motivation.

Specialized courses and opportunities

Another significant motivator is the lack of specialized courses offered in Nepal’s institutions. Many students have specific career goals and seek programs that are not available in their home country. Countries like the US and the UK are known for offering a wide range of courses that cater to diverse interests and career options. Subjects such as artificial intelligence, robotics, biotechnology, and environmental studies are more readily available in international universities.

Research opportunities and infrastructure

Opportunities for research and access to advanced infrastructure are additional drivers pushing students to pursue further education overseas. Foreign research institutes offer state-of-the-art facilities, well-equipped laboratories, and funding for research initiatives, which can significantly contribute to a student’s academic and professional growth.

Global exposure and cultural diversity

The prospect of global exposure and cultural diversity also plays a vital role in influencing students’ decisions to study abroad. Immersing themselves in different cultures and perspectives enhances their overall educational experience and fosters cross-cultural dialogue, tolerance, and adaptability. Surveys show that over 78 percent of Nepali students consider the chance to experience other cultures and environments as a critical factor in their decision-making process.

Visa policies and job opportunities

Favorable visa policies in countries like Australia, Canada, and New Zealand also attract Nepalese students looking for better job opportunities upon graduation. Many students view obtaining a foreign degree as a pathway to lucrative employment in their host country or even back in Nepal. Data from the Nepal Immigration Office indicates a steady increase in the number of student visas granted for these nations over the past decade.

Political and economic factors

Socioeconomic and political factors also come into play in Nepali students’ decision-making processes. Concerns about the insecurity of Nepal’s education system due to frequent strikes and disruptions have raised questions about educational quality and reliability. Moreover, the competitive nature of the domestic labor market and limited prospects for professional advancement have encouraged students to seek better opportunities abroad.

Language barriers, specifically English language proficiency, are also influencing factors. While English is one of Nepal’s official languages, the quality of English language education may not always meet international standards. Consequently, students often choose to take English language competency exams such as TOEFL and IELTS as admission requirements for overseas universities.

The increasing number of Nepali students seeking higher education abroad reflects a global trend where overseas education is becoming more accessible and attractive. This movement is driven by perceived higher academic standards, specialized course offerings, research opportunities, exposure to different cultures, and the potential for better job prospects. It is crucial for policymakers and education authorities to acknowledge these reasons and work towards improving educational quality and expanding opportunities within the country, in order to retain talent and contribute to national development.

Furthermore, to stay abreast of global advancements in various fields, the government should explore partnerships with international institutions and invest in research infrastructure. By addressing the issues that drive students overseas, Nepal can transform its education system into one that not only attracts students from other countries but also retains talented individuals from within the nation, ultimately contributing to the country’s growth and development.

The author works for an education consultancy firm