Tuesday, June 22, 2010

Rs 2.3b to ease fertiliser woes
SANGAM PRASAIN
KATHMANDU, JUN 21 -
The Ministry of Finance (MoF) has pledged Rs 2.30 billion for subsidised chemical fertilisers for the next fiscal year after the Ministry of Agriculture demanded more budget to meet the rising fertiliser demand.

The government has allocated Rs 1.50 billion for 100,000 tons of fertilisers, which covers only 20 percent of the total demand.

“The MoF has principally agreed to allocate the said amount in the next budget that will support about 250,000 tons of subsidised fertiliser import,” Hari Dahal, the spokesperson at the Ministry of Agriculture and Cooperatives (MoAC), said.

The ministry had proposed the amount to support import of 300,000 tons of fertiliser to the National Planning Commission.

The MoF has taken the move after fertiliser shortage mounted across the country.

With the existing supply, farmers across the country are suffering from an acute shortage of fertilisers.

After the government announced a subsidy in fertilisers to boost production, the private sector has completely stopped selling fertilisers that was highly expensive compared to the subsidised ones.

Agriculture covers over 4.4 million hectares of the country land, while the overall demand for fertilisers is 500,000 tons. “The amount proposed by the MoF for the next fiscal year is still not enough. However, farmers will surely be a relieved lot,” Dahal said.

He added that about Rs 7-8 billion is required to address the existing demand, while the government is not in a position to spend so much on fertilisers. While the use of fertilisers in Nepal is 20 kgs/hectare, China uses 260 kgs per hectare and India uses over 260/hectare.

Managing director of Agriculture Inputs Company

(AIC), Pashupati Gautam, said the fertiliser shortage will ease to some extent in a week as some amount of it has been imported.

He said the government’s “small budget” is to blame for the shortage.

According to him, the AIC has already distributed 82,000 tons of subsidised fertiliser. As 2,500 tons of fertilisers has arrived, it will ease the shortage in Kathmandu and its periphery to some extent.

The government had stopped distributing subsidised fertiliser in 1998. However, after 12 years, the government again started it after production in the country started to drop significantly and over 35 districts were declared as food deficit.

However, consumer rights activists blamed the shortage on the control of fertilisers by private sector entrepreneurs. They said private sector entrepreneurs are opening the letter of credit for the consignment of fertilisers in the name of AIC “following pressure from ministers.” The activists said there were massive irregularities in the AIC.

Sunday, June 20, 2010

Buddha Air's new ATR 72 arrives

SANGAM PRASAIN
KATHMANDU, JUNE 20

Buddha Air has brought in an ATR 72-500 aircraft in a move to expand its services.

The new plane arrived at Tribhuvan International Airport (TIA) on Sunday flying from Abu Dhabi to Kathmandu via Ahmedabad.

The ATR 72 is a twin-turboprop built by French-Italian aircraft manufacturer ATR and seats up to 70 passengers in a single-class configuration.

Buddha Air purchased the aircraft for US$ 7.75 million with payment to be made in instalments spread over three years.

“This aircraft features the lowest seat-mile cost in its class and has great efficiency and reliability and is technically sound,” said Birendra Bahadur Basnet, managing director of the airline.

The new ATR 72 will initially operate on the Kathmandu-Biratnagar sector while the older ATR 24s in its fleet will be reassigned to the Bharatpur, Dhangadhi and Pokhara routes.

Basnet said that the fare for the Biratnagar-Kathmandu flight was expected to go down considerably after the aircraft comes into operation due to its low operating cost.

Buddha Air has recently spread its wings to Paro, Bhutan. The airline was scheduled to launch flights to different cities in India from June, however, the plan has been postponed until September due to technical problems.

The airline had planned to link Kathmandu with Patna, Lucknow and Kolkata using ATR 72 and ATR 42 aircraft. “All these flights will operate at the same time,” Basnet said.

As per the air service agreement (ASA) signed between Nepal and India, Nepali airlines are allowed to operate flights to 26 destinations in India. Buddha Air plans to operate flights to most of these destinations depending on market viability.

Buddha Air owns a fleet of five 18-seater Beechcraft 1900D and three 47-seater ATR 42 and serves nine destinations across the country.
NTCDB holding its breath for coffee logo

SANGAM PRASAIN, JUNE 20, 2010

The National Tea and Coffee Development Board (NTCDB) has been making regular visits to the Department of Industry to get its coffee logo registered after it was assured that it would happen within two weeks.

However, more than three weeks have passed and the board is not sure about getting the much-awaited logo.

“We are making frequent visits after the Department of Industry assured us that the logo would be issued, but things are not going as expected,” said Binay Kumar Mishra, executive director of the board.

He added that the Department of Industry had already awarded the tea logo, and there was no need to delay the coffee logo.

However, the Ministry of Industry said that issuing the trademark might take some time as it was in the process of endorsing the terms of reference.

“The directives regarding the collective trademark have already been issued, and the ministry has sent them to the Department of Industry for implementation,” said Yam Kumari Khatiwada (Banskota), spokesperson at the Ministry of Industry.

According to her, after the issuance of the directives, the Department of Industry will endorse the terms of reference for separate products which will be finally approved by the ministry, so issuance of the coffee logo will take some time.

She said that the Department of Industry was busy assessing the terms of reference as issuing a collective trademark should be clear and sustainable.

With regard to issuance of the trademark, all the private, state-owned or cooperative coffee producers will get a collective trademark confirming that the coffee is produced and certified in Nepal. Coffee produced in any part of the country will be marketed under this single logo.

The board has been raising its voice for the logo for the last four to five years. The board plans to apply for registration of the coffee logo in the international market as soon as the logo is issued here, Mishra said.

The tea logo has already been issued with the brand "The Nepal tea -- A symbol of quality from the top of the world".

Mishra said that the board would start registering coffee producers across the country to gather systemic updates and information about production, export, cultivating areas and the farmers.

According to the NTCDB, the area under coffee cultivation in Nepal has increased to 16,000 hectares in 2009.

Nepali farmers produce the Arabica variety of filter coffee. This is the most popular variety and enjoys a 70 percent share in the global coffee market.

At present, coffee is commercially produced in Nepal in more than a dozen districts including Gulmi, Palpa, Syangja, Arghakhanchi and Lalitpur. In the fiscal year 2007/08, Nepal exported coffee worth Rs. 950 million compared to Rs. 360 million in the previous year.

According to the NTCDB, 40 percent of the coffee produced in Nepal is consumed locally. The annual production of coffee presently stands at 267 tons out of which 127 tons has been exported this year, an increment of 10 percent compared to last year.

Nepali coffee is exported to Korea, Japan, the US and a number of Arab countries.



Strategic plan aims to Boost tea, coffee yield

The National Tea and Coffee Development Board (NTCDB) has proposed a budget of Rs. 1.27 billion to the National Planning Commission in the upcoming fiscal year's budget for a strategic programme aimed at boosting tea and coffee production.

According to the NTCDB, Rs. 1 billion will be spent on developing the tea sector under its five-year strategic plan. Similarly, Rs. 110 million has been earmarked for development of the coffee sector under its three-year strategic plan.

Binay Kumar Mishra, executive director of the NTCDB, said that Rs. 270 million would be spent in the first year (first phase) under the programme.

He said that the strategic plan aimed at increasing production, enhancing and assuring quality and developing markets for Nepali coffee through strong and coordinated action by the agencies concerned.

The board said that production of tea would increase to 30,000 tons annually in five years from the existing 16,700 tons under the strategic plan. Similarly, coffee output would be boosted to 650 tons annually in three years from the existing 300 tons.

The strategic plan aims to generate greater employment in rural areas which will boost the rural economy by opening up new development opportunities.

“If this strategic plan is carried out, the contribution of tea and coffee to the GDP will stand at the top position,” said Mishra. He added that the contribution of tea to the GDP of India was at the second position. “The government should realize the potential of tea and coffee and invest in the sector."

Monday, June 14, 2010


Fertiliser crisis won’t go away

SANGAM PRASAIN

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KATHMANDU, JUN 11 - As chemical fertiliser shortage worsens across the country, farmers are expressing rage at the government by vandalising depots and distribution units in several districts.

Farmers have recently vandalised fertiliser distribution depots in Bhaktapur and Nuwakot. Farmers’ delegations from Bhaktapur and Nawal-parasi met Agriculture Minister Mrigendra Kumar Singh Yadav on Wednesday and Thursday respectively and demanded solution to their problem at the earliest. Farmers in Kavre, Dha-ding, Nuwakot, Dolakha, Sindupalchowk, Bha-ktapur and Kathmandu district are affected by the shortage in particular since paddy planting season has started there with an early monsoon. Minister Yadav responded that the government subsidy in fertiliser had fallen short for this fiscal year.

“The annual national demand of fertiliser has soared to 500,000 tonnes but the government subsidy covers only 100,000 tonnes,” Yadav said. “Considering the problem, we have requested the finance minister to increase the amount for 300,000 tonnes,” he said, adding that fulfilling

the national demand requires Rs. 5 billion while the budget ceiling for the agriculture ministry is Rs 2.30 billion.

On the other hand, the state-owned fertiliser supplier Agriculture Inputs Company (AIC) had only 11,000 tonnes of fertilisers for the current fiscal year. “We imported 2,500 tonnes from India on Wednesday,” said Pashupati Gautam, managing director of the AIC.

According to him, the government had an agreement of importing 50,000 tonnes of fertilisers. “We have paid for importing 15,000 tonnes and had a due for the same quantity,” he said, adding that 7,000 tonnes of the paid for amount would be obtained within two weeks. Similarly, 7,500 tonnes of fertiliser will be imported from Assam in the same period.

“We have the plan of importing 20,000 tonnes of DAP and 10,000 tonnes of Urea from Turkey,” said Gautam. According to him, the letter of credit (L/C) for the shipment of 10,000 tonnes of Urea and 10,000 tonnes of DAP from Turkey has been opened.

Although the government has claimed that the shortage has aggravated in Kathmandu and its periphery, farmers in Tarai districts are hit harder as Indian authorities have tightened unlawful export.
CIAA orders CAAN to halt payment

SANGAM PRASAIN
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KATHMANDU, JUN 11 - The Commission for Investigation of Abuse of Authority (CIAA) has issued an order to the Civil Aviation Authority of Nepal (CAAN) to halt the release of a sum of Rs. 60 million as approved by its board to Sambu Construction Co. of Korea.

A contract to expand the international terminal building, operation airlines complex and car park at Tribhuvan International Airport (TIA) for Rs. 1.20 billion had been awarded to Sambu Construction on July 9, 1999, the CIAA said.

Citing delays in construction due to technical problems that emerged while levelling

the ground inside TIA and bandas and other hassles, the company had claimed Rs. 160 million more as compensation from CAAN.

The CAAN board had approved a sum of Rs. 60 million to be paid as compensation two weeks ago. It decided to release the money by increasing the variation order under the TIA improvement project package 1 as it said Sambu Construction had refused to accept compensation of less than Rs. 60 million.

The board consisting of coordinator Ratish Chandra Lal Suman, (CAAN deputy director general), member Phanindra Gautam (under secretary at the Ministry of Law and Justice), officiating member Alok Chandra Shrestha (joint secretary at the Ministry of Tourism and Civil Aviation), member Basudev Lal Shrestha (director, finance department, CAAN) and member Prem Raj Lohani (director, TIA improvement project) endorsed the decision to release Rs. 60 million.

Phanindra Gautam had registered a note of dissent saying that CAAN would end up paying Rs. 12.8 million more if it approved the release of Rs. 60 million. “I was not satisfied with the board’s decision to release the said amount,” Gautam said.

“The CIAA has seized documents related to the TIA improvement project and payment procedures for further investigation,” said CIAA spokesperson Ishwori Poudel.

The government had released an additional Rs. 6.7 million to complete the ground levelling and earth removing work. However, the contractor had submitted a bill for Rs. 54.7 million in 2001 citing technical reasons and delays. Technicians have said that Rs. 7 million would have been sufficient for the work.
East Asian arrivals take to Nepal sky

SANGAM PRASAIN

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KATHMANDU, JUN 15 - Nepal is becoming a major spiritual tourism destination for East Asian travelers attracted by Lumbini, the birthplace of the Buddha, and other religious spots.

Although not much attention has been paid to marketing and promoting Buddhist sites, the number of religious visitors has been growing each year.

The World Bank South Asia Economic Update 2010 reveals that travelers from East Asia made up 26.5 percent of the total tourist arrivals in Nepal.

The statistics of the Nepal Tourism Board also reflect a similar trend. Tourist arrivals from China, South Korea and Thailand have been increasing in the past few years. The numbers have surged since 2006 after the signing of the comprehensive peace accord.

The number of Chinese arrivals in Nepal has increased by 185.97 percent in the last three years. Around 19,000 Chinese tourists visited Nepal in 2009. In the three years from 2006 to 2009, tourist arrivals from South Korea, Singapore, Thailand and Malaysia have soared by 68.40 percent, 164.26 percent, 83.48 percent and 46.32 percent respectively.

Travel trade analysts attribute the increment in East Asian arrivals to their rising income levels, desire to visit the birthplace of the Buddha and better air connectivity. Currently, three Chinese airlines operate flights to Nepal with China Eastern Airlines being the latest entrant.

"The Budhha's birthplace and Buddhist stupas and monasteries are major attractions that have helped in the growth of East Asian arrivals in Nepal," said Ram Kaji Koney, past president of the Nepal Association of Tour and Travel Agents (NATTA).

He added that arrivals could be doubled if adequate attention was paid to promoting Lumbini and other Buddhist sites in East Asia.

The growth in inbound from East Asia has prompted the concerned stakeholders to pay special attention to the region.

Nepal is expecting 100,000 tourists from China during Nepal Tourism Year 2011 while it has targeted a 20 percent increment in tourist arrivals from other East Asian countries.

With immediate neighbours China and India also targeting East Asian tourists, Nepal will have to play its card smartly to woo East Asian visitors. Both China and India have also targeted East Asia as a prime tourism source.
Nepal has not capitalized on Lumbini’

SANGAM PRASAIN
APR 01 -2010
Dr. Victor Wee is chairman of Malaysia Tourism Board and also chairman of the United Nations World Tourism Organization (UNWTO) Programme Committee. He is a former secretary-general of Malaysia's Ministry of Tourism. He was also chairman and overall coordinator for the Visit Malaysia Year 2007 campaign, which saw a 19.5 percent hike in tourist arrivals in 2007 compared to the previous year. The Kathmandu Post talked with Dr. Wee about how Nepal's ambitious target to bring one million tourists during Nepal Tourism Year 2011 could be realised. Excerpts:



Tell us about your relationship with Nepal.




I was invited to speak at the 40th annual general meeting of Hotel Association Nepal (HAN). Before this, I had been invited to speak at the PATA conference held on Feb. 1. I had also been invited by Nepal's Ministry of Tourism and Civil Aviation. At that time, I had talked about how the country could make NTY 2011 a success. At the previous conference, I had mentioned how Lumbini could be accessed as a gateway for pilgrims by linking up and bringing low-cost carriers.



Which markets should we be concentrating on?




My latter presentation was titled "Breaking into new markets with product innovation". I have noticed that the national campaign run by the government aims to attract tourists from Europe. If you look at the global mega trend, Asia has become a rich market for tourism, and more emphasis and marketing should be done for this region. A successful campaign will require close cooperation between the government and tourism players.

Tourism in Asia Pacific is growing rapidly. By 2010, it is estimated that about 400 million tourists will come from this market. In context of Nepal, the two emerging markets, China and India, are the potential markets due to short-haul routes. Really, Nepal is in a strategic position.

For the Asia Pacific market, Lumbini needs to be developed. Air Asia, Malaysia is prepared to come to Nepal. Apart from Malaysia, the Buddhist pilgrims market for Nepal are Thailand, Vietnam and Sri Lanka. Nepal still has not capitalised on or taken advantage of Lumbini.



What would you suggest to Nepal's tourism players and the Nepal Tourism Board to make NTY 2011 a success? What lessons can be learnt Malaysia?



The success of the Malaysian tourism sector is due to the highest commitment of the government. Second, close coordination with the industrial players and local levels; and third, organising regular promotional events. The tourism players should not only focus on the traditional source markets in the Western countries when you draw up your marketing plans and overlook the mega trend of the big increase in income and travel that is occurring in the Asia Pacific region.

New markets are opening up in Eastern Europe, Central Asia, Russia and the Balkan countries; and attracting tourists from these new destinations requires your participation in international expos and trade fairs.



Malaysia is a prominent destination for Nepalis, but arrivals from Malaysia are small.



Yes, there are more than half a million Nepali workers in Malaysia. It's very huge, and the flights are largely filled by the workers. In addition, there is only one airline, Nepal Airlines, connecting Malaysia. You need to have more flights. Some Malaysian airlines are showing interest to connect Kathmandu. They will sell the destination so Nepal needs to embark on an awareness campaign early.



What must Nepal do to meet the envisaged target of one million tourists?




Nepal needs to start its promotional campaign right now so that tourists interested in visiting Nepal know about the new products and destinations. Similarly, Nepal should decentralise its destinations. Instead of concentrating on Kathmandu, Pokhara and Chitwan need to be explored as new destinations.

Likewise, tourist sites should be kept clean. More infrastructure must be developed. Most importantly, creation of a business friendly environment and peace and stability are the key to propelling tourist growth.