Thursday, November 11, 2010

Nepal-IRRI to sign deal

SANGAM PRASAIN
KATHMANDU, NOV 12 -

The Nepal government and the International Rice Research Institute (IRRI) are to sign an agreement to collaborate in rice research and rice technology development.

The Ministry of Agriculture and Cooperatives had submitted a proposal in this regard to the council of ministers that was approved by its bill committee on Oct. 27. The committee has also approved the memorandum of understanding signed between IRRI and the government. The secretary of the Agriculture Ministry and the director general of IRRI signed the memorandum on behalf of their respective organizations. According to a ministry official, the two sides will hold a discussion on the agenda and fix the date for the signing.

As per the proposed pact, the collaboration term will last for five years which can be renewed, the official said. “Collaboration with IRRI will be a milestone in research on Nepali rice and its development,” said ministry spokesperson Hari Dahal. He added that it would also contribute to formulating a rice policy in Nepal. Nepal is in the 17th place among the world’s rice producing countries. Last year, rice output amounted to 4.5 million tons. However, the country faces a rice deficit of 316,000 tons, said the Agriculture Ministry.

Nepal produces Rs 2.66b worth of bananas yearly

SANGAM PRASAIN
KATHMANDU, NOV 11 -
Nepal produces banana worth Rs. 2.66 billion annually, according to government statistics. The country produces 88,849 tons of banana on 5,714 hectares of land. The banana output accounts for 0.4 percent of the Agriculture Gross Domestic Product (AGDP).

Although, bananas are grown across the country, the Tarai plains lead in output. Kailali is the top banana producing district in Nepal with production in the last fiscal year reaching 11,558 tons.

Other large producers are Morang, Nawalparasi, Chitwan, Sunsari, Rupendehi and Kapilvastu. Production in these districts amounted 10,635 tons, 8,021 tons, 6,202 tons, 6,038 tons, 3,661 tons and 2,893 tons respectively.

According to the Food and Agriculture Organization (FAO), Nepal ranks 56th in banana production in the world.

India is the world’s largest producer. In 2008, India’s output amounted to 26.29 million tons worth US$ 3.73 billion. After India, the Philippines is the second largest banana producer with a total output of 8.68 million tons, followed by China (8.42 million tons) and Brazil (6.99 million tons).

Nepal has six different species of banana. “If the country steps towards commercial banana farming, Nepal’s land has the potential to yield 15-20 tons per hectare,” said Agriculture Ministry spokesperson Hari Dahal. Fruits traders said that the banana supply in Kathmandu amounted to 20,187 tons worth Rs. 600 million at wholesale prices in the first seven months of the current calendar year.

“Of the total supply, 76 percent is produced in Nepal while the rest is imported,” said Narayan Dhital, president of the Fruits Traders Association. About 24 percent of the bananas consumed in Nepal is imported from India.

Though the fruit are available in all seasons, Dashain, Tihar and Chhath are the major events when consumption of bananas surges in Nepal. With traditional crops like rice, wheat, maize and millet having lower yields in recent years, farmers are switching for cash-crops like banana of the late. According to Agriculture Ministry, there has been increment in the commercial banana farming in Nepal.

Wednesday, November 10, 2010

Target: Chinese outbound

National Tourism Council okays proposal to provide free visas to tourists from China

SANGAM PRASAIN
KATHMANDU, NOV 11 -

The seventh meeting of the National Tourism Council held recently under the chairmanship of Prime Minister Madhav Kumar Nepal has endorsed a proposal to provide free visas to Chinese tourists in a bid to attract more visitors from the northern neighbour during Nepal Tourism Year 2011.

If the Ministry of Finance and the Ministry of Home Affairs agrees to the plan, it will be sent to the cabinet for final approval, a government official said.

The Ministry of Tourism and Civil Aviation moved to provide free visas to Chinese tourists in response to the proposal

made by the Chinese side during the fourth meeting of the Nepal-Tibet Joint Tourism Coordination Committee held in Lhasa on Sept. 14. Visas will be provided gratis for the duration of the NTY campaign period.

“Chinese travellers are interested in visiting Nepal, and the free visa scheme proposed by the Tourism Ministry can be a major factor in attracting Chinese outbound,” said ministry spokesperson Laxman Prasad Bhattarai.

China has become one of the world’s most watched outbound markets. According to the China Tourism Academy, the number of Chinese tourists in 2010 is estimated to reach 54 million. China is also projected to become the fourth largest source of outbound tourism in the world by 2020.

Nepal has been providing free visas to visitors from the South Asian Association for Regional Cooperation (SAARC). Other

foreign travellers are charged

US$ 25 for 15 days and US$ 40 for one month.

Nepal has targeted bringing 100,000 Chinese visitors during NTY 2011. Since 2009, there has been a modest growth in Chinese arrivals to Nepal. According to the Nepal Tourism Board, Nepal received 18,677 Chinese visitors in 2009 against 14,076 in 2008, a growth of 32 percent. Arrivals in 2009 accounted for 5 percent of the total inbound.

Chinese arrivals by air as of October 2010 amounted to 20,933 to take the fourth place after India (85,655), the US (27,217) and the UK (26,033). According to the World Tourism Organization, rising middle class incomes and a pent-up demand to see the rest of the world have made China one of the most significant outbound tourism markets. Similarly, easing of controls on foreign travel has also contributed to a surge in Chinese outbound.

In terms of outbound travel spending, China is currently ranked fifth and is expected to be the fastest growing in the world from 2006 to 2015, jumping into the number two slot for total travel spending by 2015, said the WTO. Chinese nationals spent US$ 19.1 billion on tourism abroad in 2004. Chinese tourists are among the biggest spenders when they travel overseas, making them a highly desired market.

China has been the leading source of outbound tourists in Asia since 2003, though most Chinese tourists (71 percent in 2005) only go to Hong Kong and Macau. The WTO said that the impact of Chinese outbound tourism started to be felt in Asia (17 percent in 2005) with far fewer going to Europe (5 percent in 2005) and elsewhere. By 2020, China is projected to produce 100 million outbound trips. “Looking at the huge prospects of the Chinese market and being a close neighbour, issuing free visas will help boost Nepal’s tourism market,” Bhattarai said. If the plan works in 2011, the government could extend it, he added.

Meanwhile, the Tourism Ministry is mulling improving road access to Nepal for Chinese tourists as it has been a major hindrance to increasing arrivals.

Monday, November 8, 2010

Flying high

SANGAM PRASAIN
NOV 05 -
With the number of tourist arrivals increasing, domestic airline companies are doing brisk business this autumn. Almost all the domestic airlines have increased their flight movement in the major tourist destinations. Since October, there has been a surge in flight movement on the Lukla, Pokhara, Jomsom and Bharatpur sectors. Foreign tourists make up the major portion of the passengers during this season. According to recent statistics, Nepal recorded more than 62,000 arrivals in October, or more than 2,000 arrivals daily.

According to domestic air operators, flight movement on the Kathmandu-Lukla sector has swelled by 20 percent compared to the autumn season last year. Domestic airlines report making over 80 roundtrips daily between Kathmandu and Lukla, the gateway to Everest.

On Friday, Tara Air made 22 flights, Agni Air 15 flights and Sita Air four flights. According to the carriers, foreign tourists make up 90 percent of the passengers on the Lukla sector. “Our business has grown by 20 percent on the Lukla sector compared to autumn last year,” said Sailesh Shrestha, marketing chief of Agni Air. Autumn is one of the main seasons for business for airlines operating services on the Kathmandu-Lukla sector. Tara Air, Agni Air and Sita Air fly Twin Otter aircraft on their Lukla operations.

In terms of passenger movement, more than 600 tourists returning from Lukla to Kathmandu daily as the autumn season is coming to a close. Autumn is a popular trekking season. More than 30 percent of the tourists visiting Nepal go trekking in the Everest and Annapurna regions. Some of the most trodden trekking routes in the Everest region are Kalapatthar, Gokyo Lake, Everest Base Camp and Syangboche. Trekking in Nepal is an all season activity. However, the most popular seasons are spring (February-May) and autumn (September-November).

Other major tourist destinations like Pokhara, Jomsom and Bharatpur are also seeing greater flight movement these days. These three destinations attract a sizeable number of tourists during autumn.

The air operators say that flights between Kathmandu and Pokhara, Jomsom and Bharatpur have increased by 10-15 percent compared to the last autumn season, airline operators said.

Buddha Air has increased its frequency on the Pokhara sector to 10-12 flights daily from the usual five-six flights with the peak tourist season in full swing. “Flight movement on the Pokhara route has increased by 10-12 percent this autumn,” said Rupesh Joshi, marketing manager of Buddha Air. Agni Air and Guna Airlines operate three-four flights daily.

Pokhara attracts around 40 percent of the total number of tourists visiting Nepal. More than 70 percent of the tourists visiting Pokhara go trekking to Annapurna Base Camp and other trekking destinations. Last year, 203,527 tourists had visited Pokhara.

Travel traders said that they were encouraged that the country did not see any kinds of disturbances during the last seven months. Strikes, bandas and transport shutdowns have taken a heavy toll on tourism in previous years.

Hotels are reporting full bookings with the growth in tourist arrivals this year.

Tourism entrepreneurs said that business during the current tourist season was the highest in the year.

Fishtail chopper accident claims two

SANGAM PRASAIN
KATHMANDU, NOV 08 -
Three months after an Agni aircraft crashed, the Nepali sky witnessed yet another disaster on Sunday with a Fishtail Air chopper crashing in Mt. Ama Dablam range (6,812 m) in Solukhumbu district.

The accident took place at 9: 30 am when the chopper flown by Captain Sabin Basnet accompanied by engineer Purna Awale on a rescue mission in the range went out of control due to a sudden avalanche.

“The details are yet to be known,” said Civil Aviation Authority of Nepal’s Aviation Safety Department director Binod Giri. However, preliminary assessment says that the chopper was struck by an avalanche, he said.

Basnet, an experienced helicopter pilot with over 4,500 hours of flying various types of choppers and his his companion Awale were honoured by the Swiss Embassy in Nepal on June 3 for their humanitarian support and important role in retrieving the body of Swiss citizen Uwe Micha from the Everest South Col at 8000m in May 2010.

According to Sherpa & Swiss Adventure Pvt. Ltd that coordinated with Fishtail Air for the rescue mission of a Japanese and a German mountaineer stranded in the mountain, the chopper met with the accident in its second rescue attempt. It rescued the German mountaineer in the first turn.

Both the mountaineers were the clients of Thamserku Trekking and Expedition who lost their way while returning from the expedition.

“As they got lost they had no supplementary expedition equipment to return back. This led them to getting stranded in the mountain and caused health problems for them,” Lhakpa Gyalzen Sherpa, managing director of Sherpa and Swiss Adventure, told the Post.

Normally, expeditions in autumn run the risk of avalanches and few climbers ascend peaks in Nepal during this season.

“Autumn is a season for trekking but there are clients who are more adventurous and want to take the risk,” said Sherpa, who is also a rescue specialist.

Mt. Ama Dablam is a technically difficult mountain, where mountaineers normally prefer to climb for a warm-up to climb the world’s highest peak Mt. Everest. According to the Ministry of Tourism and Civil Aviation, 180 mountaineers ascended Mt. Ama Dablam in 2009 of which 177 mountaineers climbed in autumn.

Meanwhile, the bodies of Captain Sabin Basnet and engineer Purna Awale were brought to Kathmandu. Issuing a press statement, the CAAN said that the bodies have been sent for the post-mortem to Tribhuvan University Teaching Hospital (TUTH) and would be handed over to their families.

Thursday, November 4, 2010

Veggies, pulses major role players in AGDP


Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables

SANGAM PRASAIN
KATHMANDU, NOV 04 -

Vegetables, pulses, potato and wheat have emerged as major contributors in the Agriculture Gross Domestic Product (AGDP) for the past six years.

The contribution of vegetables and pulses in the AGDP has almost doubled in these years. Vegetables and pulses have experienced a rapid growth from 2003-04 to 2009-10, increasing their share of AGDP from 5.73 percent and 2.27 percent to 9.71 percent and 4.42 percent respectively in 2009-10.

Statistics with the Ministry of Agriculture and Cooperatives (MoAC) show that

the contribution of wheat and potato in

the AGDP has surged from 4.59 percent

and 3.68 percent to 7.14 percent and 4.67 percent respectively.

“The government’s community-based programmes have boosted vegetable production, resulting in the rapid growth in vegetable farming in the country,” said Hari Dahal, Spokesperson at the Agriculture Ministry. Handsome returns in a short span of time is also another factor that has attracted farmers to vegetables.

However, paddy still has the highest share of 20.75 percent in the AGDP, followed by milk with a share of 12.36 percent.

The MoAC statistics show that the paddy share in the AGDP grew by only one percent in the last six years. As per government’s estimates, paddy production in 2009-10 is expected to decline by 11 percent.

The second largest cereal crop, wheat, also contributed to the AGDP with 7.14 percent in 2009-10. Wheat contribution in the AGDP was 4.59 percent in 2003-04. Wheat production is expected to increase by 16 percent to 1,556,000 tons in 2009-10 against 1,344,000 tons in the previous fiscal year. Increase in the export of wheat and change in the food habit has contributed to the rise in wheat production, according to MoAC officials. Among pulses, lentils has a good demand abroad.

Likewise, the share of potato in the AGDP has gone up to 4.67 percent from 3.68 in 2003-04. “The use of potato has increased of late,” Dahal said.

There has been a modest growth in the share of maize and jute in the AGDP. Among the cash crop, the share of sugarcane has also declined.

However, the contribution of milk, which was the second largest contributor to the AGDP, shrunk significantly. Milk contribution to the AGDP shrunk to 12.36 percent in 2009-10 from 15.84 percent in 2003-04. Milk production, according to government estimates, is estimated to record a rise of 3.5 percent totaling 1,496,000 tons in 2009-10.

The MoAC statistics give interesting insights. Despite the Nepalis’ trend of consuming meat, the share of mutton, buff and chicken in the AGDP has declined. According to the MoAC, buff, mutton and chicken contribute 4.42 percent, 3.24 percent and 0.67 percent in the AGDP. However, meat production, according to the MoAC is expected to grow by 3.0 percent to 248,573 tons in 2009-10.

Agro-Product’s share in AGDP

those that went up

Commodity 2003-04 (in %) 09-10 (in %)

Rice 19.75 20.75

Vegetable 5.73 9.71

Wheat 4.59 7.14

Maize 6.87 6.88

Potato 3.68 4.67

Pulses 2.27 4.42

Jute 0.13 0.17

those that went down

Milk 15.84 12.36

Forestry 9.24 8.07

Buff Meat 4.51 4.42

Mutton 3.99 3.24

Millet 2.23 1.37

Sugarcane 1.37 1.24

Poultry Meat 1.01 0.67

Eggs 1.5 0.81

Source: Ministry of Agriculture and Cooperatives

Tuesday, November 2, 2010

Here's to Tihar!

Liquor market booming, Nepali drinkers surges all time high

SANGAM PRASAIN
KATHMANDU, NOV 02 -
Quaffing alcoholic beverages is a major part of any celebration; and with the start of Tihar, shoppers have been thronging the bazaar to stock up their bars with their favourite beer, brandy, whisky and wine. And like other merchants, liquor dealers have been luring customers with special festival offers.

However, traders said that they did not expect sales to surge like during Dashain. "Retail sales of alcohol are lower than during Dashain," said Bal Krishna Thapaliya, marketing manager of Green Line Centre, an authorized dealer of almost all the local and international brands of alcoholic beverages.

Even then sales have increased to over Rs. 150,000 per day from the normal daily sales of Rs. 50,000 to Rs. 60,000, Thapaliya added.

Among domestic whisky brands, Signature is the most popular followed by Royal Stag, Bagpiper and McDowell. Daily sales at Green Line Centre amount to 20-25, 15-20, 10-12 and 10-12 cases respectively, said Thapaliya.

However, sales of the once most preferred whisky of Nepalis, Johnnie Walker Red Label, have shrunk due to the absence of company support in Nepal, Thapaliya said. "We are selling only two-three cases daily compared to 10-12 cases before."

Meanwhile, sales of Chivas Regal are swelling as the company has been providing different schemes such as buy one get one free and other promotional programmes.

With regard to beer, Carlsberg and Tuborg occupy the largest market followed by Henkel. Green Line Centre sells 80-90 cases of Carlsberg and Tuborg beer daily while sales of Henkel beer amount to 50-55 cases.

Gorkha Brewery leads the beer brands with the highest-selling products like Tuborg, San Miguel, Carlsberg and Gorkha.

Gorkha Brewery said business had been good and that Tihar sales were expected to rise. Sales during the festive season increase by 20 percent compared to normal days.

According to local distilleries and breweries, the beer market currently stands at six million cartons per year. That means 6,000,000 bottles are consumed each month.

Of the total sales of Gorkha Brewery, Tuborg accounts for about 55 percent. The company holds a 75 percent share of the beer market.

Meanwhile, local wines like Hinwa, Grapple, Nettlange and Himali Ramble are also becoming popular in Nepal.

"The share of the market of Nepali wines has grown to 10 percent as people have realized that they are organic and more hygienic," said Ram Thapa, proprietor of Sankata Wine Store and authorized dealer of all the local wines.

Thapa added that over 1,300 cases of local wines were sold during the Dashain festival. However, with demand picking up for local products, there is a shortage of local wines in the market.

"Hinwa is preferred by customers," he said. "We are aiming to sell 1,000 cases during Tihar," he added.

Hinwa is manufactured by Makalu Wine Industries at Sankhuwasabha. Manufacturing Hinwa started in 1995 with the production of around 90 cases. At present, its production has increased to 700 cases monthly for Kathmandu only.

Grapple is another popular wine made of black grapes imported from India and apples from Mustang. Nettlange too is a fast-selling brand of wine. It is made of nettles and oranges. Similarly, Himali Ramble wine has been designed for health conscious people. It is manufactured by Shree Ram Laxmi Distillery at Marpha.