Private sector halts paddy procurement in Kailali amid price concerns

Tikapur: Private traders in Kailali have stopped purchasing paddy, creating concern among farmers eager to sell their harvest.

Before Tihar, traders were buying paddy at Rs 2,400 per quintal in Bhajani, Rs 2,600 in Tikapur, and Rs 2,800 in Dhangadhi. However, procurement has been halted since the festival. Following complaints about cheap buying and selling during a time when farmers urgently need to sell their produce, the District Administration Office, Kailali, instructed local levels to ensure transactions at the government-set support price. After the local levels issued notices accordingly, traders withdrew, saying they could not afford to buy paddy at the government rate this year.

Tikapur farmer Chapilal Chaudhary said he is in a hurry to sell his paddy and has been repeatedly contacting local traders while waiting for the Food Management and Trade Company Limited to begin purchasing. Traders in Tikapur, Joshipur, and Bhajani are preparing to buy only after the company officially sets the price. Hari Shreepaili, a food trader in Joshipur, said he would begin purchasing after Kartik 15.

Due to the increased rice imports from India last year, the rice industry has not bought the paddy that Nepali traders purchased earlier. “Warehouses are still full, and the paddy bought at Rs 3,200 per quintal last year is now being demanded for Rs 2,900,” said Dhoj Bahadur Thakulla, operator of Bhim Food Purchase and Sale Center in Tikapur. “With warehouse management costs and interest rates rising, how can industries sell at a loss? Why make new purchases?”

The Food Management and Trading Company Limited plans to start paddy procurement from Kartik 11 in Bhajani, Joshipur, Tikapur, Mohanpur, and Chaumala. The Government of Nepal has set the support price for coarse paddy at Rs 3,483 per quintal. Last year, the company targeted the purchase of 55,000 quintals of rice in the Far West (Kailali and Kanchanpur) but managed to buy only 34,502 quintals. This year’s quota is yet to be determined, according to Deepak Thapa, head of the provincial office.

Thapa said coordination has been made with local municipalities that have food warehouses to ensure smooth procurement. Farmers who supply paddy meeting the set standards will receive payment directly into their bank accounts, with an additional subsidy from the Far West provincial government. The provincial government has allocated Rs 7 million in this year’s budget to subsidize paddy purchased by the company. Thapa added that discussions with the local Chamber of Commerce and Industry revealed traders are unable to make significant purchases this year as last year’s stock remains unsold.