SANGAM PRASAIN
KATHMANDU, DEC 07 -
Production of rice and maize, the major food grains of the country, saw a robust 11 percent growth this year. It has been estimated that the growth in production of the food grains will propel the country’s economy growth and help avert food deficit.
According to the Ministry of Agriculture and Cooperatives food grains production report released on Tuesday, the country produced an additional 436,000 tons of rice and 200,000 tons of maize this year as compared to last year’s production. The production has been attributed to early monsoon and regular rainfall in major food producing districts. This year’s total rice output amounted to 4.46 million tons, while that of maize amounted 2.67 million tons.
Maize production this year has made a new record. Output of the second largest food grain after rice hit a whooping 2.67 million tons, which is equivalent to Rs. 44.65 billion.
The encouraging output, according to economists, is estimated to help meet the government envisaged 4.5 percent economic growth in the current fiscal year and avoid food deficit to some extent. However, they said the government’s food distribution channel should be more effective.
“At the time when the entire economic indicators are in a poor state, encouraging rice and maize production remains vital to propel the economic growth,” said economist Bishwambor Pyakurel.
Drop in food grains production last year had resulted in shortage of 316,465 metric tons of food, affecting over 1.6 million people. Rice and maize production had dropped by 11 and 4 percent respectively last year. Fall in the production of these major food grains had constrained the agriculture growth rate to 1 percent and the impact was largely reflected in the country’s overall economic growth.
The government has targeted to increase the economic growth rate to 4 percent in this fiscal from 3 percent last year. “Increased food grain production will at least raise the country’s Gross Domestic Product (GDP) by 0.5 percent,” said Pyakurel.
Pyakurel added that prevailing doubt about whether the country will achieve the 4 percent growth has been cleared with the agriculture production status. Agriculture sector contributes about 23 percent in the country’s total GDP. Major food grains’ production has a direct impact on the country’s GDP.
Puskar Bajracharya, a member at National Planning Commission, estimates that the GDP might increase by 1 to 2 percent. “We were uncertain about whether the country would meet the projected 4 percent economic growth rate this year when budget was delayed; however, now it seems possible,” added Bajracharya.
This additional rice and maize output is likely to play a key role in decreasing food deficit. However, economists express skepticism about government’s distribution policy.
“Unless the government adopts effective food distribution policy, districts reeling under food crisis will not get respite,” Bajracharya said, adding that the increased production could stabilise the market, but it cannot bring the price down.
“Early monsoon and continuous rainfall this year has boosted production,” said Hari Dahal spokesperson for the Agriculture Ministry. Dahal added that increased productivity in major districts also contributed to increase production.
“If paddy had been planted in all districts, an additional 178,000 tons of rice would have been produced,” Dahal said.
Tuesday, December 7, 2010
NAC unions warn of stir
FIFTH FREEDOM RIGHTS ROW
SANGAM PRASAIN
KATHMANDU, DEC 08 -
Trade unions of Nepal Airlines Corporation warned on Tuesday that they would shut down Tribhuvan International Airport if the government did not revoke its decision to allow Air Arabia to operate Kathmandu-Kuala Lumpur flights.
The unified trade union committee said that the Slot Committee meeting of the Civil Aviation Authority of Nepal (CAAN) had made an unilateral decision to grant Fifth Freedom rights to the carrier. The right allows an airline to pick up passengers at one destination and continue to another destination
The union said that the move was legal but against the national interest. “Selling NAC’s air route reflects an intention to make the national flag carrier go bankrupt and feed vested interests,” said Rajendra Regmi, president of the Nepal National Employees Union, central committee, NAC.
He added that although the country was celebrating Nepal Tourism Year 2011, NAC had been compelled to wage war against the government. “The government should be responsible for all the happenings,” Regmi said.
The Kathmandu-Kuala Lumpur route is one of the lucrative sectors for NAC that earns Rs. 8 million on a single flight. A NAC official said that the carrier had been incurring losses for three years on the route and that it only started generating profits from 2008.
Air Arabia is scheduled to launch its service to Malaysia from its hub in Sharjah on Dec. 16. The airline has already started selling tickets for the flight directly from its two official agents in Kathmandu.
The Ministry of Tourism and Civil Aviation and CAAN had awarded the route considering the weak performance of NAC which now has a single Boeing to serve all its international destinations. The ministry and CAAN had aimed to fill the gap on the eve of Nepal Tourism Year.
NAC had also operated flights on the Kathmandu-Bangkok-Singapore route under Fifth Freedom rights some 15 years ago, but it had to pay a royalty to Thai Airways, said NAC deputy managing director Raju Bahadur K.C. But NAC will not receive any royalty from Air Arabia, he added.
The union said that the parliamentary International Relation and Human Rights Committee had called NAC to discuss the issue. The union said that the committee had told it that any protest by NAC could harm diplomatic relations and the objectives of the Air Service Agreement (ASA) signed between the two countries. Nepal has signed ASAs with almost 36 countries and all of them allow Fifth Freedom rights.
Recently, the Commission for Investigation of Abuse of Authority (CIAA) had summoned the Ministry of Tourism and Civil Aviation secretary Kishor Thapa, joint secretary Ranjan Krishna Aryal and NAC chairman Sugat Ratna Kansakar over the issue of allowing Air Arabia to operate flights. The unions at NAC had filed cases against them.
SANGAM PRASAIN
KATHMANDU, DEC 08 -
Trade unions of Nepal Airlines Corporation warned on Tuesday that they would shut down Tribhuvan International Airport if the government did not revoke its decision to allow Air Arabia to operate Kathmandu-Kuala Lumpur flights.
The unified trade union committee said that the Slot Committee meeting of the Civil Aviation Authority of Nepal (CAAN) had made an unilateral decision to grant Fifth Freedom rights to the carrier. The right allows an airline to pick up passengers at one destination and continue to another destination
The union said that the move was legal but against the national interest. “Selling NAC’s air route reflects an intention to make the national flag carrier go bankrupt and feed vested interests,” said Rajendra Regmi, president of the Nepal National Employees Union, central committee, NAC.
He added that although the country was celebrating Nepal Tourism Year 2011, NAC had been compelled to wage war against the government. “The government should be responsible for all the happenings,” Regmi said.
The Kathmandu-Kuala Lumpur route is one of the lucrative sectors for NAC that earns Rs. 8 million on a single flight. A NAC official said that the carrier had been incurring losses for three years on the route and that it only started generating profits from 2008.
Air Arabia is scheduled to launch its service to Malaysia from its hub in Sharjah on Dec. 16. The airline has already started selling tickets for the flight directly from its two official agents in Kathmandu.
The Ministry of Tourism and Civil Aviation and CAAN had awarded the route considering the weak performance of NAC which now has a single Boeing to serve all its international destinations. The ministry and CAAN had aimed to fill the gap on the eve of Nepal Tourism Year.
NAC had also operated flights on the Kathmandu-Bangkok-Singapore route under Fifth Freedom rights some 15 years ago, but it had to pay a royalty to Thai Airways, said NAC deputy managing director Raju Bahadur K.C. But NAC will not receive any royalty from Air Arabia, he added.
The union said that the parliamentary International Relation and Human Rights Committee had called NAC to discuss the issue. The union said that the committee had told it that any protest by NAC could harm diplomatic relations and the objectives of the Air Service Agreement (ASA) signed between the two countries. Nepal has signed ASAs with almost 36 countries and all of them allow Fifth Freedom rights.
Recently, the Commission for Investigation of Abuse of Authority (CIAA) had summoned the Ministry of Tourism and Civil Aviation secretary Kishor Thapa, joint secretary Ranjan Krishna Aryal and NAC chairman Sugat Ratna Kansakar over the issue of allowing Air Arabia to operate flights. The unions at NAC had filed cases against them.
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