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Trade and Development

Page history last edited by editor 9 years, 2 months ago
Topics  Plan 

History of Liberalization

  1. Facts/Timeline/Trends
  2. Analysis
    1. Why is the treaty important? Significance?
    2. How did/does that influence the economy of Nepal?
    3. What were the topics of debate and controversy for each treaty?  
  3. Full Text depository 

Issue Topic: Liberalization efforts

  1. Policy analysis of BIPAA 

Issue Topic: Migration and Remittance



Issue Topic: Mosanto seeds and agricultural productivity








Issue1: Trade Liberalization and Food Security in Nepal














Government Initiatives in Food Policy -

Copied from IFPRI document pg 23.


  • During the Rana rule (1846-1950 AD), the state catered to the food needs of the military and civil servants. Food grain was obtained from Guthi and Raikar lands and for effective distribution, 'food stores' were kept under the control of the Commander-in-Chief
  • In 1948, the government established a 'Rice Milling and Sales Company' under military control.
  • The 1949, the establishment of the Department of Rice Mills and Sales marked the beginning of public sector intervention in distribution of subsidized food grain in Kathmandu Valley.
  • With the multi-party system in early 1950, food administration was separated from the military.
  • In 1951, a "Department of Food" was created in the Center with Regional Food Control Offices to procure rice in the Terai and dispatch it to Kathmandu for distribution. By 1951-52, there were 32 stores under this food control office.
  • In 1955, the government converted Regional Food Control Office to 'Food Storage and Sales Department' with a purpose to supply rice to Kathmandu cities (about 2,000 MT every year). In 1957, these units were merged to create a new "Food Office".
  • In the early 1960s, the government instituted a 'Valley Food Arrangement Committee' and allocated budget from government sources.
  • In 1964, the government replaced the Committee by 'Food Arrangement Corporation' to distribute food obtained locally.
  • In 1965, "Food Management Corporation" was established under the Corporation Act to replace Food Arrangement Corporation. This institution continued till 1972.
  • In 1971/72, the droughts and excess rains in hilly and remote regions of the country underscored the need for a national level agency. Thus, HMG created the Agricultural Marketing Corporation (AMC) by merging the Food Management Corporation and the "Agricultural Supply Corporation. The objectives were to:
    • Provide regular and organized supply of agricultural inputs,
    • Make food grains available at a reasonable price for the poor in food deficit districts,
    • Achieve better co-ordination by bringing both the input and output distribution functions under single management,
    • Promote food grain exports to countries other than India,
    • Stabilize prices of food grains, and
    • Increase agricultural production by providing incentives to the producers.
  • In 1973, the government integrated the Agricultural Supply Corporation and the Food Arrangement Corporation (FAC) into the Agriculture Purchase and Sales Corporation. The FAC took care of food supply all over the country.
  • In 1974, the agriculture Purchase and Sales Corporation was split into the AIC and NFC under the Corporation Act. NFC was responsible for handling food grain distribution while the AIC was responsible for providing inputs to farmers. The NFC was entrusted with procurement, storage and distribution of food grains as follows:
    • Procure, store, transport and distribute food grains at a fair price in order to meet the food requirements in the remote and food deficit areas and to maintain farm incomes.
    • Ensure adequate supply of food-grains and other essential commodities,
    • Implement the rice exports program of the government,
    • Maintain a reserve stock in relation to domestic requirements, and
    • Construct and maintain warehouses for storage and distribution. NFC was established to distribute food in deficit areas (i.e. mainly hilly and mountain districts) but a major part of the food has mostly been sold in the Kathmandu valley.
  • In 1986, the NPC identified one of the tasks to monitor the price movements across the border with India. The Minimum Support Price (MSP) and other prices fixed by the Government of India was one of the factors considered in deciding the level of MSP and the sales price of fertilizers.
  • Since 1998/99, the policies have been to downsize the NFC, and increase the role of private sector in food marketing. Since mid-1990s, NFC has reduced its operations.

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