Nepal imported cereals worth Rs 16.88 billion in the same period last year, with import bill totalling Rs28.61 billion in the last fiscal year 2013-14, according to the statistics of Trade and Export Promotion Centre (TEPC). Cereal products include beaten rice, buckwheat, millet, husk rice, barley, wheat and corn.  

Experts said that the rise in Nepalis income along with real estate and industrial expansion has left less room for farmland, resulting in low agricultural output to

meet the demands of a growing population.

They said cereal imports, particularly rice, could continue to grow in the coming years as the country’s farmland has lost its charm to attract youths due to low economic yield. Nepal, self-sufficient in rice until a few decades ago, the experts predict, is on the verge of becoming a major importer of food grains.

A late monsoon along with untimely rain is set to hit the paddy yield this fiscal, with the Agriculture Ministry estimating the paddy output to drop 5.1 percent to 4.78 million tonnes. Nepal produced 258,435 tonnes less paddy compared to last year largely due to a late monsoon and untimely rainfall.

The ministry pointed to rapid urbanisation and natural disasters among other reasons for the dwindling paddy output. Similarly, the output of maize—country’s second staple crop—is expected to fall 6 percent to 2.14 million tonnes this fiscal.

Amid country’s growing cereal import bills, former Commerce Secretary Purushottam Ojha has warned of food security challenge in the country.  

“If the exporting countries impose restriction on food exports, Nepal could face serious food crisis. Restriction on food exports is inevitable. If any countries produce less food, it will have no choice but to impose a ban,” Ojha said, referring to a ban imposed by India on export of rice and wheat a few years ago.

Ojha suggested that the government give a serious thought into the issue to increase food production by introducing various schemes, including subsidies to encourage farmers. Manpower shortage in farmland has been emerging as major problems in the country due to mass migration of the youths for foreign jobs.  

“The increased numbers of Nepalis opting for overseas jobs due to low income in the farm sector has left the country with a food security risk. So, the government should act promptly. Only a favourable farm policy could help ensure food security and food sovereignty,” Ojha added.

On Thursday, Agriculture Minister Hari Prasad Parajuli briefed the Parliamentary Agriculture and Water Resources Committee that country’s dependency on imported agricultural products was growing at an alarming rate. Parajuli informed the lawmakers that the government needs to increase investment in the farm sector significantly to achieve the goal of self-sufficiency in food.

The ministry said that it would require a budget funding of Rs38 billion in the next fiscal year 2015-16 to attain high economic growth through intensive and accelerated growth in the farm sector.

Likewise, it has proposed to spend Rs44 billion in the fiscal 2016-17 and Rs50 billion in 2017-18 to achieve its objectives.

The ministry plans to bring down the country’s paddy import bill from Rs14 billion last fiscal year to Rs6 billion by the next fiscal through implemention of various programmes. As the paddy import bill is projected to shrink to Rs2 billion in 2016-17, it is nurturing an ambitious plan to export paddy worth Rs 3 billion by 2017-18.

Likewise, the government plans to reduce the maize import bill progressively to Rs2.5 billion in 2015-16 and to Rs2 billion and Rs1 billion by 2016-17 and 2017-18 respectively. Nepal currently imports maize worth Rs5 billion annually.

Meanwhile, the import of crude palm oil has increased 23.1 percent to Rs 3.3 billion in the first eight months of this fiscal year.