Rice, maize output grows by 11pc

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.