It’s got potential

Nepal could boost its lentil export with proper government initiatives


SANGAM PRASAIN
KATHMANDU, NOV 01 -

Nepal could boost its lentil exports to Rs. 25 billion annually if the government does proper research, provides improved seeds and improves links with the international market, a government official said.

The country’s three-year interim plan, which is in the final stage of endorsement, has targeted increasing production of pulses to 377,000 tons from 262,000 tons presently.

The plan aims to increase output by 115,000 tons in three years. If this quantity is exported, the country can earn another Rs. 12 billion. Lentils are one of the country’s high-value crops. According to the Agriculture Ministry, lentils account for 90 percent of the total export of pulses. Bangladesh and the Middle East are the largest importers of Nepal’s lentils.

In 2008-09, exports jumped to 56,767 tons worth Rs. 5.66 billion from Rs. 1.62 billion in 2007-08 to become the country’s largest export. However, exports shrank to 37,779 tons worth Rs. 3.74 billion in 2009-10, according to the Trade and Export Promotion Centre. “The rise in exports recorded in 2008-09 shows that lentils are a potential commodity to narrow the increasing trade deficit the country has been facing for a long time,” said Hari Dahal, spokesperson at the Ministry of Agriculture. According to Nepal Rastra Bank’s annual macroeconomic statistics, the plunge in the export of lentils was reflected in a drop in the overall export volume. Total exports dipped 9.7 percent in 2009-10 to Rs. 61.13 billion.

Traders said that exports of lentils dropped as a result of a government ban imposed last year in response to pressure that the country might face a food deficit after India stopped exports. However, after entrepreneurs assured the government that exports would not affect the country’s food supply, the government lifted the restriction.

Lentils are well received in the international market. Considering the fact that

the international market for lentils

has increased by 6.8 percent in terms of value and 6.2 percent in terms of volume in the last 10 years, traders say lentils have massive prospects.

“An appropriate trade facilitation policy and introduction of accredited food

quality certification to link with the global market would boost production and exports,” said Dahal. In 2007, Nepal was the sixth largest producer of lentils in the world. In 2008, Nepal rose to the number three slot with an output of 161,147 tons after Canada (1 million tons) and India (810,000 tons).

Production slipped to 161,147 tons in 2007-08 and further to 147,725 tons in 2008-09, according to the Agriculture Ministry. Similarly, the area under cultivation declined to 189,497 hectares in 2007-08 and to 183,798 hectares in 2008-09. The ministry said that improved seeds introduced by the Nepal Agricultural Research Council had boosted production to some extent.

“Unfortunately, the government does not have any special programme to boost lentil production that has such a tremendous export potential,” Dahal added.

More than 90 percent (139,700 tons) of the lentils grown in Nepal come from the Tarai. Output in the mountains and hills amounts to 1,171 tons and 6,437 tons respectively. Dang district is the largest producer of lentils in the country. In 2008-09, Dang produced 27,568 tons followed by Sarlahi (19,230 tons), Rautahat (15,920 tons), Bara (14,146 tons), Kailali (12,836 tons) and Bardia (10,246 tons).