South Asia Watch on Trade, Economics and Environment (SAWTEE)
organized a national workshop titled “Export Potential of Fresh Vegetables to
India and Other Countries” on 30 December 2016 in Kathmandu. The objective
of the workshop was to validate the findings of the research carried out by
SAWTEE with support from SAMARTH-NMDP. The research was carried out at major custom points in Bhairahawa, Birgunj,
Biratnagar, Jhapa, Dhangadi, Mahendranagar and Nepalgunj. The research
findings was based on field survey and wider consultation with related stakeholders.
The potential of
fresh vegetables to be exported was analysed from the perspective of supply,
demand and issues related with the market. Presenting the study findings, Senior
Consultant of SAWTEE and Former Commerce Secretary, Mr. Purushottam Ojha
pointed out the problems faced by Nepali traders at border crossing for not
being able to meet sanitary and phytosanitary (SPS) standards set by India. He
opined that proper coordination between India and Nepal mainly in terms of harmonization
of Nepali and Indian SPS and technical standards affected vegetable exports. He
further added that lack of integrated laboratories for quality certification
and the absence of mutual recognition of accreditation between Nepal and India
have left Nepali fresh produce export at the mercy of Indian customs offices.
Similarly, non-tariff measures which discourage trade through customs have
given rise to high incidence of informal trade. The research found that a large
amount of fresh vegetables was transported informally through the custom points.
Mr. Ojha also insisted on the importance of having proper measures related to
Pest Risk Analysis (PRA) to make Nepali vegetables good enough for export not
only to India but also to third
countries.
Similarly,
while presenting the findings, Ms. Neelu Thapa, Programme Coordinator at SAWTEE
pointed out that Nepal’s potential for vegetable export remains largely
unexploited. Nepali vegetables, such as off-season
vegetables, bitter gourd, pointed gourd, sponge gourd, and mustard leaf etc.
are preferred by Indian consumers for their better quality and could be sold at
a premium price in Indian market. She
further added that Bangladesh could emerge as a lucrative market for Nepali
fresh vegetables. However, high tariff rate of 25 per cent to enter the
Bangladeshi market is a discouraging factor. At the same time, potential for
exporting vegetables to countries in the Middle East is also encouraging,
provided Nepali suppliers are able to meet their strict sanitary and technical
standards. However, inadequacy in proper marketing of the product, from both
public and private sectors, was found to be major hindrance for vegetable
export. She was of the opinion that the inadequacies of PRA mechanisms are the
reasons behind low preferences for Nepali vegetables in the neighbouring
markets.
The study
suggested measures to develop a concerted action agenda that needs to be
followed up in order to address the problems related with exporting vegetables
and establishing effective linkages with export markets. The need for capacity
building of Nepali farmers and traders on post-harvest operations and other
trainings to enable them market their produce was also discussed during the
programme.
Speaking at the
programme, Commerce Secretary Mr. Naindra Prasad Upadhyay also admitted that
Nepal’s inability to meet technical and food quality standard has hampered the
Nepali fresh produce exports. He suggested more investment in increasing
productive capacity of the vegetable producers to meet the domestic demand and
for export and also in improving infrastructure in terms of storage facilities
and collection centres so that Nepal could ensure consistent supply of
vegetables to the international market without being dependent on seasonal
booms.
Likewise,
Chairman of SAWTEE, Dr. Posh Raj Pandey urged the stakeholders to develop
mechanisms so that Nepali products could comply with the technical standards
set by importers in order to capture the markets available for such products. During
the interaction, Chief Executive Officer of Federation of Nepali Chambers of
Commerce and Industry’s Agro Enterprise Centre, Mr. Pradip Maharjan said that attention
needs to be given to lack of proper post-harvest handling of fresh produces
which makes Nepali products expensive and uncompetitive in comparison to Indian
products. Similarly, Mr. Rabi Sainju, Joint Secretary at the Ministry of
Commerce, Ms. Shabnam Shivakoti, Programme
Director, Post-harvest Management Directorate, Department of Agriculture and Dr.
Hari Dahal, Agriculture Expert and Former Secretary, Government of Nepal also
voiced their opinions in the programme.
Ms. Srijana Rana,
Agriculture Portfolio Manager at SAMARTH-NMDP, highlighted the importance of
vegetables in effective poverty minimization efforts in Nepal.
The event was
participated by various organizations, research institutions, agriculture
experts, activists and development partners and saw suggestions such as
establishing horticulture promotion boards, creating vegetable export zones,
implementing Good Agriculture Practices, among others, for the promotion of
vegetable export.
Programme Agenda
Presentation: Purushottam
Ojha, Former Secretary, Ministry of Supplies and Commerce and Senior Consultant,
South Asia Watch on Trade, Economics and Environment (SAWTEE) & Neelu
Thapa, Programme Coordinator, SAWTEE
Export Potential
of Fresh Vegetables to India and Other Countries
Presentation:
Media Coverage
