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.

Saturday, November 13, 2010

Soaltee, Tara Gaon gain

SANGAM PRASAIN
KATHMANDU, NOV 12 -
The Soaltee and the Tara Gaon Regency hotels have posted profits of Rs 28.68 million and Rs 18.81 million respectively for the first quarter (July-September) of the current fiscal year. The five-star properties saw their incomes rise with tourist arrivals swelling during the period even though it is considered to be a non-tourist season.

The increased revenue has helped the Tara Gaon to offset its losses of the last fiscal year to some extent. The hotel was in the red by Rs 5.53 million in Q1 of the last fiscal year.

According to the analysis report released by the management of the Tara Gaon, improved tourist movement from July to September pushed up its occupancy to 57 percent from 36 percent in the same period in the last fiscal year.

“Hence, the hotel was able to make a good profit compared to the business it had in past years,” the report said. The hotel has targeted increasing the occupancy rate to 60 percent and earn a profit of Rs 360 million at the end of the current

fiscal year.

The hotel plans to offer a “special rate” to attract customers during the off-season. Meanwhile, the Soaltee’s profit increased 27 percent to Rs 28.68 million in Q1 from Rs 19.40 million in the same period in the last fiscal year.

According to the Soaltee’s analysis report, a 23 percent growth in tourist movement by air from July to September and non-occurrence of strikes and bandas, which have badly hurt the hospitality sector in the past, have helped to boost revenue. The hotel has targeted MICE tourism to increase its business in the days ahead.

Although July-September is considered to be a lean season, inbound tourism during the period has been rising steadily of late. According to the government’s statistics, arrivals by air in July amounted 29,338, up 26.09 percent from last year. Similarly, arrivals in August and September were up 24.30 and 20.60 percent to 34,415 and 41,331 respectively.

NTY to be launched at 8 border points

SANGAM PRASAIN
KATHMANDU, NOV 12 -
After the launch of Nepal Tourism Year 2011 in Kathmandu and other major cities across the country, the Tourism Ministry and the NTY 2011 implementation committee plans to take the campaign to all the major border towns.

NTY 2011 will be inaugurated in Kakkarbhitta, Birgunj, Biratnagar, Bhairahawa, Nepalgunj, Mahendranagar, Dhangadhi and Janakpur simultaneously on Nov. 16.

The programme will start with a cleaning campaign with the participation of government agencies, businesspersons and local residents.

“The objective of the campaign is to inform people about the need to keep the cities and border points clean besides providing warm hospitality to visitors who come overland,” said Tourism Ministry spokesperson Laxman Prasad Bhattarai.

A recent survey done by the Nepal Tourism Board showed that 429,455 tourists entered Nepal overland in 2009. Among them, Indian visitors numbered 298,821. NTY 2011 has targeted bringing one million tourists including 300,000 overland tourists. “The move is an effort to decentralize the NTY 2011 campaign and gather support at the regional level to make the campaign a huge success,” said NTB spokesperson Aditya Baral.

Baral added that the programme aimed to sensitize local people at the tourist entry points about the national campaign and revamp the existing facilities. “Improving immigration procedures, simplifying frontier formalities and building rest areas for tourists have been planned to make things as convenient as possible for visitors,” he said.

According to the NTB survey, Belhiya (Bhairahawa) was found to be the most important border point in terms of Indian tourist arrivals with almost 33 percent of them entering Nepal through here. Other major entry points are Vittamod (Janakpur) with 19 percent, Birgunj with 17 percent and Kakkarbhitta with 14 percent.

On Feb. 26, Prime Minister Madhav Kumar Nepal launched NTY 2011 in Kathmandu. The event then moved to Pokhara on April 12 and to Bhairahawa, Nepalgunj and Biratnagar on April 13, April 21 and April 23 respectively.

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.