Kathmandu. The agricultural sector of Nepal is in a phase of ups and downs in recent years. On the one hand, farmers are looking for a reasonable price for the product, while on the other hand, industrialists are trying to make quality domestic rice competitive with imported products.
The problem of farmers not getting the price of their products due to lack of fertilizer and seeds is an old problem, but recently the industrialists are also facing another serious challenge. Industrialists who buy rice from farmers and deliver it to consumers are also facing a serious problem.
Birendra Bahadur Basnet, the owner of Arju Rice Mill in Morang, eastern Nepal, is also going through the same problem. According to him, the biggest crisis in the paddy-rice industry is not the production, market or raw materials, but the capital that is stuck in the loan business.
Pida Basnet said that about Rs. Basnet says that the industry had to go through legal and administrative procedures due to the remaining amount to be collected from wholesalers and retailers in various cities including Kathmandu and Pokhara.
According to him, the rice is sold in cash when it reaches the final consumer. When the money paid by the consumer is stuck at the level of middlemen, the capital of the industrialist has been blocked. He complains that this is the reason why industrialists have to spend more time and energy on debt recovery than expanding their business.
According to Basnet, although there has been some facilitation after the formation of the new government, it is necessary to make debt recovery more effective. He believes that if the mechanism of calling non-paying traders through the police administration and making them pay immediately or taking legal action quickly if necessary, it will bring great relief to the industrialists.
According to him, if the current problem of 3 crore rupees is not solved in time, it may turn into billions of rupees in the future. Therefore, he says that it should be taken as a challenge not only for an industry but for the entire business system. He said that preparations are being made to advance this issue as a joint campaign of industrialists in the future.
Arzu Rice Mill has prioritized the relationship with the farmers despite the problem of borrowing. According to Basnet, the industry is purchasing paddy from farmers according to the minimum support price determined by the government. Therefore, he claims that there is no significant dissatisfaction from the farmers. He commented that the lack of fertilizers is not only a problem of Nepal but a global problem.
The annual rice processing capacity of Arju Rice Mill is 30,000 to 35,000 tons. The industry is now not limited to rice production but has moved ahead with the plan to establish a complementary industry that utilizes Kanika and rice bran that comes out after processing. According to Basnet, the goal is to increase the value by making full use of the product.
Another emphasis of Basnet is on the consumption of indigenous rice. According to him, Nepali rice is not inferior to imported rice in terms of quality, but in many cases it is better. He says that since it can be traced to the farm where it was produced, it is possible to get clear information about the status of pesticides.
He argues that the notion that bread is always better than rice is not scientifically correct from the point of view of health. As rice is a gluten-free food, he suggests that a balanced amount of Nepali rice should be consumed. Mentioning that the tradition of eating rice on a plate is changing, he urged Nepali rice to be included in the daily diet as a balanced diet.
According to Basnet, rice produced in Nepal has the ability to compete with imported rice in both price and quality. Therefore, he believes that if Nepali consumers choose indigenous products, the farmers, the industry and the national economy will benefit directly.
The journey from paddy production to the consumer’s kitchen is not only a matter of farming and industry, but also a matter of business discipline, timely payment and trust in indigenous products. The issue of Rs 3 crore loan raised by Arju Rice Mill has indicated the need for a more systematic business culture in Nepal’s agri-business.