Maize import shoots up by five times

Import of maize has increased by almost five times in a year. “The import of maize in the fiscal year 2009-10 stood at 1,32,213 metric tonnes from 32,861 metric tonne a year ago,” said spokesperson of Ministry of Agriculture and Cooperatives Dr Hari Dahal.
Similarly, the maize seed import has also more than doubled in a year. “In the fiscal year 2008-09, only 458 metric tonnes seed of maize was imported but in the fiscal year 2009-10, the import went up to 9,778 metric tonne,” he said, adding that Nepal is still ranked at the 23rd position among the maize producing nations list.
Maize is not only the second staple food but also the second crop. It occupies 26 per cent in the total food grain consumed in the country.
“In the last one decade, maize production has increased by 28 per cent, and its productivity has increased by 20 per cent,” according to the ministry that has started the fourth phase of Hill Maize Research Project that will run for four years beginning this August.
“Of the total project cost of Rs 5.65 million, Rs 2 million will be supported by the USAID and the remaining by the Swiss Agency for Development and Cooperation,” Dahal informed.
Some 3,500 poor and marginalised families of the 20 high-hill districts will benefit from the project, he said, adding that apart from government agencies the private sector will also be included in the project.
After the first phase (1999-2002), second phase (2003-2007) and third phase (2008-2010), the project will help increase maize yield that is among the lowest in Nepal.
The maize yield in Nepal stands at 2,361 kg — according to the ministry data — that is lesser than 2,647 kg of India and 5,535 kg of China.
The low yield is attributed to low seed replacement rate — that is only six per cent — coupled with soil, irrigation and timely fertilisers.
Nepal has 17,500 metric tonne demand in Nepal but the production is 1,076 metric tonne only.
Though, Nepal is an agrarian economy, it could not become government’s priority after 1990. Till seventh five-year plan, agriculture was the first priority of the government and donors but after the eighth five-year plan, the priority has shifted.
The government has earmarked Rs 10.52 billion for the total agriculture sector in the budget for the current fiscal year that is only 2.5 per cent of the total national budget. Among all the ministries, Agriculture Ministry comes at the eighth position in the ranking of budget volume, Dahal informed.

Bhattarai's largesse gets Mahat's goat

Finance Minister Dr Baburam Bhattarai — one of the chief architects of the ultra-red resurgence — has exuded optimism that his party, the CPN Maoist, would be a guiding force in the years to come.
"The people are convinced that only the Maoists can lead Nepal,” was Dr Bhattarai repartee to the ruling coalition's move to pass financial liabilities to future governments.
It may be recalled that the finance minister in his budget speech had spelt out a populist package. Provisions have been for complete loan, interest and fine-waiver of up to Rs 30,000. There are more goodies in store. Interests and fines have been written off for all those, who borrowed between Rs 30,000 and Rs 1 lakh from Agriculture Development Bank, Small Farmers Development Bank, Nepal Bank Ltd and Rastriya Banijya Bank. The cabinet has given its nod to Dr Bhattarai's ambitious plan last week. But, playing to the gallery will hurt the government. The state exchequer has to pick up a tab of a whopping Rs 9.18 billion.
Former finance minister Dr Ram Sharan Mahat is quick to pounce upon the populist measures. "This will transfer the entire burden to the future governments. It is unethical. He has been the most irresponsible finance minister,” alleged Dr Mahat.
Dr Bhattarai, however, countered his predecessor. "We are not passing the buck. We are the ones, who will lead the country for years to come,” said a supremely confident Dr Bhattarai. "On top of this, its our responsibility to give relief to small farmers and entrepreneurs, whose income took a huge hit during the conflict,” he reasoned.
“We are determined to settle the amount within a time frame. Either way, the financial institutions were going to lose since no one was in a position to pay,” said the finance minister, who seemed to have the nation's pulse. Interestingly, Dr Bhattarai has allocated Rs 400 million in the budget, which was tabled on September 19.
Dr Mahat picks a financial hole in the minister's scheme. “This has put the future finance minister in the dock. He has to pay more than Rs 8 billion for Dr Bhattarai's deeds,” blamed the Nepali Congress leader.
Dr Bhattarai, though, is unfazed. "We know our responsibility. No one needs to worry on this score,” he reiterated.