Nepal witnessed a significant surge in rice and paddy imports in the fiscal year (FY) 2024/25, driven primarily by the government’s policy decision to remove advance taxes on paddy imports. This move appears to have encouraged higher import volumes, leading to a combined import value of over Rs 31.18 billion.
According to data from the Department of Customs, Nepal imported:
- 531.1 million kilograms of paddy worth Rs 20.35 billion, generating Rs 1.52 billion in government revenue.
- 165.4 million kilograms of rice worth Rs 10.83 billion.
In comparison to FY 2023/24, the increase is striking:
- Paddy imports rose from 319 million kg worth Rs 12.05 billion, showing a 70% jump in volume and a 69% increase in value.
- Rice imports more than quadrupled from 39.7 million kg worth Rs 3.53 billion to 165.4 million kg worth Rs 10.83 billion.
A large portion of the rice imported was Basmati rice, a premium variety. In FY 2024/25, Nepal brought in:
- 68.7 million kg of Basmati rice worth Rs 7.52 billion, compared to
- 46.8 million kg worth Rs 6.23 billion in the previous fiscal year.
The increase in imports, while helpful for meeting domestic demand, has raised concerns about the impact on local farmers and food self-sufficiency. As Nepal remains heavily dependent on imported agricultural products, especially rice—the country’s staple food—the government may need to reassess its agricultural support policies. Strengthening local production, improving irrigation, and offering fair prices to domestic farmers could help reduce this growing reliance on foreign rice and paddy in the future.
