Wednesday, November 24, 2010

Where fruits reap no benefit for growers

SANGAM PRASAIN
KATHMANDU, NOV 25 -

Nepal produces 250,000 tons of oranges annually, but only 10 percent of this output reaches the market due to inadequate transportation facilities, poor market access and dismal export performance.

According to the Ministry of Agriculture and Cooperatives, only 23,000 tons are shipped to buyers while the rest ends up as food for livestock. A ministry official said that although demand has not expanded and orange farmers are yet to learn how to get better prices, recent data shows that orange growers have been enlarging the area under cultivation.

Orange output amounted to 260,054 tons in the fiscal year 2009-10. The area under cultivation has increased to 23,098 hectares from 6,250 hectares in the last 10 years. Similarly, output increased to 260,854 tons from 66,654 tons during the same period, the ministry’s data showed.

Agriculture Ministry spokesperson Hari Dahal said that poor exports and supply in the domestic market due to inadequate transport facilities had prevented orange growers from reaping benefits.

The country exported 830 tons of oranges and 10,656 tons of orange juice in 2009-10. Orange is grown in over 54 districts, particularly in the hilly areas. Orange accounts for 25 percent of the total fruit production. Apart from poor transport facilities, ineffective collection, inadequate cold storage facilities, poor market access and low prices have prevented producers from getting the real value of their production, Dahal said.

Although the area under cultivation and productivity have increased in the last decade, the benefit for farmers has not grown proportionately. Orange production has overtaken mango production, which was at the top position. “In terms of value, oranges worth Rs. 10 billion are produced annually,” Dahal added.

Considering the increasing interest of farmers towards orange cultivation, the country could produce oranges worth Rs. 20 billion in a couple of years. However, the government should bring an appropriate incentives package to boost output, he said.

The Western Development Region is the largest producer of oranges accounting for 40 percent of the total output. Syangja is the largest orange producing district with a total output of 11,732 tons in 2009-10. Lamjung stood second with 10,814 tons followed by Tanahu (9,631 tons), Salyan (8,598 tons), Kavre (7,565 tons), Gorkha (7,011 tons), Dhading (6,341 tons), Terhathum (7,193 tons) and Dhankuta (95,935 tons).

Lukla No 8 in world’s 10 most thrilling airports

SANGAM PRASAIN
KATHMANDU, NOV 24 -

Lukla Airport, the gateway to the Everest region, has been ranked eighth among the world’s top 10 stunning and inspirational airport approaches by PrivateFly.com.

The private jet-booking agency based in St. Albans, Hertfordshire has suggested its 10 recommended airports to adventure lovers as “A View to a Thrill”.

The surrounding terrain, thin air, highly changeable weather and the airport’s short, sloping runway make it one of the most challenging landings in the world. History Channel’s Most Extreme Airports programme has ranked Lukla as the most dangerous airport in the world.

Lukla is a 35-minute flight from Kathmandu. It is the busiest domestic airport in the country, handling more than 50 flights daily during the tourist season. Only short take off and landing (STOL) airplanes can land at Lukla.

The runway is 351 m long and rises over 30 m from the bottom to the top, giving it an angle of about 10 degrees. The airport lies at an elevation of 2,800 m.

It was built in the 1960s with the support of Sir Edmund Hillary.

In January 2008, the airport was renamed Tenzing-Hillary Airport in honour of the first Everest summitters.

PrivateFly.com has named Sion Airport in Switzerland the perfect touchdown at Europe’s most stunning airport. St. Maarten-Princess Juliana Airport in the Netherlands was placed third.

St. Barts in the Caribbean, Gibraltar, St. Gallen-Altenrhein in Switzerland, Madeira Funchal in Portugal and London City airport come after Lukla as the most thrilling and adventurous airports.

Monday, November 22, 2010

Gasoline prices expected to increase

SANGAM PRASAIN
KATHMANDU, NOV 23 -

The budget has increased the charge levied on petrol and diesel under the road maintenance and upgrading head which means that Nepal Oil Corporation (NOC) will soon pass the additional burden to consumers.

The budget has hiked the road maintenance and upgrading charge on petrol to Rs. 4 per litre from Rs. 2 and to Rs 2 per litre on diesel from Rs 1, according to an NOC official.

The government has raised these charges as revenue from petrol and diesel for maintenance and upgrading of roads. With the increment, NOC will have to pay Rs 28.44 on a litre of petrol and Rs 11.56 on a litre of diesel as revenue.

NOC general manager Digambar Jha said that the hike in road maintenance and upgrading charges by the new budget has resulted in losses amounting to more than double to NOC.

“The move has compelled us to seek a revision of the existing price structure of petrol and diesel,” said Jha.

The hike has compelled NOC to bear additional expenses of Rs 32 million on petrol and Rs 65 million on diesel each month. The fresh hike will compel NOC to incur a loss of Rs 3.25 on a litre of diesel. The profit on petrol has dropped to Rs. 1 per litre.

The state-owned monopoly had increased the price of petrol by Rs 3 per litre and diesel by Rs 2.50 per litre on July 6. Since then, NOC had been enjoying a profit of Rs 5 per litre on petrol and Rs 0.76 on diesel. “We were optimistic that the new budget would consider the value added tax (VAT) on LP gas. Instead, the budget added a greater on NOC,” Jha added. It loses Rs 144 on each cylinder of gas.

NOC had been requesting the government for a VAT reduction on LP gas for a long time.

The country consumes 16 million litres of petrol monthly while diesel consumption amounts to 60 million litres.

“NOC’s total losses will climb to Rs 187 million per month from the existing Rs 90 million,” the NOC said.

Jha said that the government decision to hike the fuel price was not reasonable. “The increment on diesel will push up transport fares which will adversely affect the market price.”

Petroleum is the government’s largest revenue earning commodity. In the last fiscal year, the government raised Rs 12. 82 billion as revenue from NOC.

Sunday, November 21, 2010

Human error blamed for Agni Air crash

SANGAM PRASAIN

KATHMANDU, NOV 22 -

Human error appears to be the cause behind the crash of Agni Air's Dornier aircraft on August 24 during a scheduled passenger flight from Kathmandu to

Lukla, according to an Agni Air's accident report made public here on Sunday.

The investigation commission report said that the technical aspect of the twin-engine plane was a secondary cause. However, human errors -- not following the flight checklist and lack of advice to deal with the emergency -- were found to be the major cause of the accident.

Although the pilot had an option to prevent technical errors, he was unable to get suggestions from the ATC and Agni Air's pilots in such a critical situation that were in communication with him. "But nervousness ruled more in the last hour making the pilot take his independent decision and made him forget regular checklist procedures," a source said. "We assumed that the captain forgot to switch off the battery before lowering the landing gear," said engineer Sharada Bhakta Rajbhandari, presenting the technical aspect of the report.

When the two generators of the aircraft were died, its battery could provide power for about 30 minutes. "However, the battery lasted for only 13 minutes as a result of bringing the landing gear down using the electric hydraulic pump without switching off the battery power that had consumed maximum power," Rajbhandari said. As soon as the landing gear was lowered, the aircraft lost speed and balance that made the aircraft uncontrollable and it nosedived to the ground. The investigation commission determined that the accident took place due to spatial disorientation of the flight crew, after the loss of altitude indication because of the total loss of battery power causing the aircraft go into an uncontrolled dive to the ground. Weather at the time was severe in terms of rain, cloud and visibility. Visibility was less than 500 m.

On August 24, the Agni Air’s aircraft crashed at Bastipur of Sikharpur VDC in Makwanpur district killing 14 passengers

on board. The aircraft dived from an altitude of 11,500 ft and impacted the ground at an elevation of 1,760 ft and disintegrated completely.

The investigation commission report also said that there was no emergency declared despite using the emergency checklist for double generator failure, which required the aircraft to land (Aviation Safety Action Program) ASAP. "If the flight captain was able to declare an emergency after knowing that both generators had failed, it should be a different story," said Rajbhandari.

The flight had contacted Agni Air's instructor pilots and the ATC after problems were seen in the aircraft. "The ATC lacked proper information about the technical status of the aircraft and thus failed to understand the gravity of the situation." Agni Air's instructor pilots who were in communication with the aircraft failed to provide suitable suggestions to handle the situation, the report said.

The investigation commission for the Agni Air crash said that there was no recording of

the initial 15 minutes after take-off in the Cockpit Voice Recorder (CVR), which they said was a serous issue.

Meanwhile, minister for Tourism and Civil Aviation Sharat Singh Bhandari said that his ministry was committed to making an in-depth study of air crash reports. "Reports of past air accidents will also be studied and appropriate remedies implemented to make the Nepali skies more reliable,” he said.

Findings

• The aircraft had dual generator failure and was powered for about 13 minutes

on battery

• The landing gear was found extended in the aircraft

• Language spoken in cockpit was ambiguous and non-standard

• No emergency was declared despite using the emergency checklist for double

generator failure

• Agni Air's instructor pilot who were in communication with the aircraft failed

to provide suitable suggestion

• The aircraft was released by maintenance personnel for IFR operations despite its lacking of proper standby power supply

Tuesday, November 16, 2010

Nepali coffee gets its logo

SANGAM PRASAIN

KATHMANDU, NOV 17 -

The National Tea and Coffee Development Board (NTCDB) has finally received approval for its coffee logo from the Department of Industry after a three-year effort. The board had applied for the trademark in 2007.

The “Himalayan Specialty, Nepal Coffee” logo will be launched on National Coffee Day on Wednesday. All private, state-owned and cooperative coffee producers will get the collective trademark confirming that the coffee has been produced and certified in Nepal. Coffee produced in any part of the country will be marketed under this single logo.

Coffee traders will have to pay the board a fee amounting to 1 percent of the value of the invoice to use the logo, said executive director Binay Kumar Mishra of the board.

Nepali coffee producers and traders have been encouraged by the issuance of the much-awaited logo as it would promote the country’s organic coffee among international buyers. Coffee traders said that the logo would help Nepal to exploit the full potential in the existing markets besides opening up new markets. Nepal’s coffee is currently exported to Japan, the US, Korea and Europe. The board is also confident of gaining membership to the International Coffee Organization (ICO) after the issuance of the trademark. “We only have observer status; now we can apply for full membership,” said Mishra.

The board has sent a proposal in this regard to the Agriculture Ministry which will be further discussed at the Finance Ministry and the Foreign Ministry. Membership in the ICO costs Rs. 700,000 annually.

“After joining the ICO, information about Nepal’s coffee will be included in its database which

will be accessible to traders from across the world,”

said Mishra.

He added that the board planned to apply for registration of the coffee logo in the international market and was seeking government support to do it.

Royal’s exit bursts TIA seams

SANGAM PRASAIN

KATHMANDU, NOV 17 -
Given bad daylight along with the departure of Saudi Arabia’s Prince Al-Waleed bin Talal via Tribhuvan International Airport (TIA), the country’s sole international airport, over 70 domestic flights were affected on Tuesday. One international flight -Silk Air- was diverted from the Nepali sky due to difficulty landing at TIA, its official said. Silk Air diverted to Lucknow.

On Tuesday, TIA opened at 10:30 am as opposed to its usual opening time of 6:30 am. TIA general manager Dinesh Shrestha said it was due to bad weather conditions. However, the departure of the Saudi Arabian prince also contributed to cancellations of domestic departures and holding up numbers of arrivals in the sky. Yeti Airline cancelled 10 flights while sister airline Tara Air cancelled 35 flights. Buddha Air’s 13 flights were affected while other airlines’ movements were cancelled, private air operators said. However, TIA permitted all the international flights.

Flight cancellation stranded large numbers of passengers. Domestic air operators said operating cost rose to massive level even as they had to face the wrath of passengers. “Passengers to Pokhara scheduled for 8:30 am departure today were flown at 4:10 pm,” the airlines source informed. Likewise, aircraft that were looking to land on TIA were also given ‘hold in air’ direction. Holding for more than 60 minutes forced numbers of aircraft to return when they started running out of fuel. “We were ordered to hold flights for more than 60 minutes in the air. Aircraft do not have adequate fuel to hold for long

periods. That compelled us to divert flights,” he added. “We are not prioritized as compared to the international flights,” said Pradip Shah, marketing manager of Yeti Airlines. Delay in domestic flights is not new for TIA. Passengers and aircraft face long delays in departure and arrivals when TIA sees VIP departures or arrivals.

A TIA source said they are betweeen the devil and deep sea due to limited infrastructure and resources. “If we prioritize domestic flights, we face international pressure concerning safety and security.” General manager Shrestha, however, pointed out that international airlines make their flights by instrument flight rules (IFR) system that allows pilots to fly through clouds. “International flights used IFR to operate.”

Sunday, November 14, 2010

Coffee becomes a key cash crop for Nepali farmers

SANGAM PRASAIN
KATHMANDU, NOV 15 -

Nepal’s coffee production has soared over the last decade as an increasing number of farmers switched from poor-paying silk and honey to coffee.

According to the Agriculture Ministry, coffee output increased from 72 tons in 2000 to 384 tons in 2010. Production in 2009-10

was up 15 percent compared to 2008-09.

Higher earnings from coffee have encouraged farmers to expand the land under cultivation five-fold from 314 hectares in 2000 to 1,650 hectares in 2010.

The Agriculture Perspective Plan did not give priority to coffee and the Asian Development Bank did not incorporate it as a high-value product during the implementation period as silk and honey were considered to have high export potential. However, farmers took to growing coffee prompted by rising demand and better incomes.

Farmers in Lalitpur were the first to grow coffee in Nepal, which now has expanded to over 25 districts across the country.

Farmers in Palpa, Syangja, Arghakhanchi, Lalitpur, Makwanpur, Gulmi, Kavre and Sindhupalchok including 17 other districts across the country are aggressively engaged in commercial coffee cultivation with demand for organic coffee soaring in the global market. Lalitpur and Gulmi are the major coffee producing districts in Nepal.

“The country could reap huge benefits if Nepali coffee could be properly marketed at the international level,” said Agriculture Ministry spokesperson Hari Dahal.

In order to promote commercial coffee farming and boost its export, the government had prepared a three-year strategic plan. However, the plan has been stuck at Department of Industry. As per the plan, the National Tea and Coffee Development Board (NTCDB) had applied for the get its coffee logo registered at the department.

After the issuance of the logo by the department, all the

private, state-owned or cooperative coffee producers will get a collective trademark confirming that the coffee is produced and certified in Nepal.

Although coffee output was up significantly, it fell short of the target by 50 percent. The government’s three-year interim plan had projected production to cross 685 tons by the end of the plan period (2009-10). Dahal said the target could not be reached due to low productivity. Nepal’s productivity stands at 300 kg per hectare, way below the world average of 2 tons per hectare.

Nepal exports about 65 percent of the total coffee produced. The country started exporting coffee commercially in 2000 with a shipment of 9 tons. In 2008-09, it exported 88 tons of coffee worth Rs. 790 million.

Japan, South Korea, the US, Canada, India, the UAE and Bhutan are Nepal’s major markets. Exporters said that there was high demand for organic coffee in the international market.

According to the International Coffee Organization, world coffee exports in 2009-10 amounted to 93.8 million bags (one bag contains 60-70 kg). The US and Brazil are the largest importer and exporter of coffee respectively in the world.