KATHMANDU: Rice mills in the Bara-Parsa area are having a hard time staying afloat as they can’t compete with cheaper Indian products. In the past four years, 250 out of the 300 rice mills there have closed down. Half of the remaining 50 are also in the red, said traders.
Domestic rice producers started facing hard times after India withdrew restrictions on rice exports in September 2011. The Indian government has cancelled the ban on the export of almost all types of rice except Basmati. This led to Nepali markets being flooded with cheap Indian products.
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Last year, Nepal imported 210,600 tonnes of rice worth Rs5.74 billion through Birgunj Customs alone, its records show. In fiscal 2013-14, rice imports through this customs point amounted to Rs3.54 billion.
