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.

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.

Subodh Kumar Gupta, vice-president of the Birgunj Chamber of Commerce and managing director of Mohit Agro Industries, said Nepal imported rice from Bihar and Uttar Pradesh states of India. According to him, the imported rice is cheaper by Rs50-100 per quintal compared to domestic products.

The local rice output is sufficient to meet 70 percent of the country’s requirement, and imported rice has hurt domestic farmers, he said. Gupta has asked for government intervention in rice imports by allowing only enough shipments to fulfil the 30 percent deficit in the domestic market. He added that the lower agriculture reform charge had also helped increase rice imports.

At present, the government imposes an 8 percent agriculture reform charge on imported rice. Traders have been demanding that the government hike it to 10 percent. Similarly, they have been lobbying for a revision of the existing 5 percent charge on paddy imports. “However, our demand has remained unheard,” Gupta said.