NFC to buy 28,500-tonne of paddy rice directly from farmers

Nepal Food Corporation (NFC) is planning to buy paddy rice directly from the farmers this year.

"The corporation will buy 28,500-tonne of paddy rice directly from the farmers this year," said general manager of the corporation Dr Shivahari Shrestha, at the NFC's 39^th anniversary programme here today.

Due to the financial crisis in the corporation, it has planned to buy paddy rice, instead of rice, he said, adding that the corporation will benefit, if it buys paddy rice directly from the farmers before the harvest. "The corporation is planning to buy some 16,000-tonne of paddy rice from Banke, Bardia and Kailali."

The corporation – to improve its financial health and diversify its product and services – is also planning to trade other food grains and cereals, except rice.

In the fiscal year 2011-12, some 21 public enterprises, out of 37, were in loss and only 15 recorded profits, according to the Finance Ministry.
Like the most of the public enterprises (PEs), the state-owned food supply authority is also running in Rs 980 million net loss till the last fiscal year 2012-13 – according to the report of Public Enterprises published by the Finance Ministry – and the government has been providing it financial help to supply the food grains to the mountainous districts. This year the government has provided Rs 465.3 million to supply rice to some 23 mountainous districts.