Food grain imports through the Birgunj border point in Parsa district fell by approximately 63 percent in the first three months of the current fiscal year 2083/84 BS (2026-27) compared to the same period last fiscal year.According to the Birgunj Customs Office, 31.64 million kilograms of food grains, including rice, maize, wheat, paddy, malt, buckwheat, and millet, were imported between mid-July and mid-October this fiscal year. This is a significant drop from the 87.047 million kilograms imported during the corresponding period last fiscal year.Krishna Prasad Mainali, the Chief Customs Administrator at the Birgunj Customs Office, stated there was a notable decrease in the import of key food items such as rice, paddy, and maize.Rice imports decreased from 9.401 million kilograms last year to 6.773 million kilograms in the first three months of the current fiscal year. The value of rice imports also declined from Rs 898.1 million to Rs 700 million.Paddy imports saw a sharp reduction, falling from 39.1 million kilograms in the first quarter of the last fiscal year to just 6.935 million kilograms this year. The value of paddy imports dropped from Rs 1.4628 billion to Rs 333.5 million.Maize imports also recorded a substantial decline, from 33.612 million kilograms last year to 6.736 million kilograms this year. The value of maize imports decreased from Rs 1.8013 billion to Rs 609.8 million.Imports of buckwheat, millet, and other food grains also saw a reduction, totaling 1.640 million kilograms this year compared to 2.341 million kilograms last year.This substantial decline in food imports is expected to directly affect the lives of people in Madhesh Province. Although Madhesh Province is considered Nepal’s ‘granary’, the risk of food insecurity is increasing due to drought and reduced agricultural output. According to the National Agriculture Census 2078, 43 percent of farming families in Madhesh Province cannot meet their annual food requirements from their own agricultural production.The reduction in food imports through Birgunj could lead to increased food prices across the country and a greater reliance on imports. A decrease in paddy production in Madhesh Province could further drive up food prices nationwide, negatively impacting consumer purchasing power.The National Statistics Office estimates that Madhesh Province’s economic growth will reach only 1.31 percent in the fiscal year 2083/84, the lowest among Nepal’s seven provinces.Nepal Rastra Bank, the central bank, noted in its report for the first two months of the fiscal year 2083/84 that consumer price inflation and the trade deficit have increased. This indicates potential pressure on foreign exchange reserves and additional challenges for the overall economy.
Background
- In the first 10 months of the fiscal year 2082/83, food grain imports worth Rs 20.79 billion were recorded through the Birgunj border point, a 15 percent decrease compared to the same period in the previous fiscal year.
- Paddy transplantation in Madhesh Province was only 51.82 percent by Shrawan 27, 2082 (BS), compared to 92 percent by the same time in 2081 (BS).
- The government of Nepal declared a drought emergency in Madhesh Province on July 24, 2082 (BS).
- The budget for the fiscal year 2083/84 allocates significant support for agriculture and food security, including capital grants of up to 40 percent for farmers and Rs 32.46 billion for the purchase of chemical fertilizers.
What happens next
Nepal Rastra Bank plans to develop a strategy for the productive use of foreign exchange reserves.