South
Asia Watch on Trade, Economics and Environment (SAWTEE) organized the programme
in association with a Jaipur-based think-tank, CUTS International organised a
programme to share the findings of a study “Linkages and impacts of
cross-border informal trade in agricultural inputs between Nepal and India” on
2 May, 2017 in Kathmandu.
Under
the project, a study was conducted to explore the extent of informal
cross-border trade in agricultural inputs across specific locations along the
India-Nepal border and figure out the impact and drivers of such informal
trade.
The
major finding of the study is that Nepali farmers are dependent on informal
trade to meet their requirement of seeds, chemical fertilizers and agriculture
machineries. Presenting the findings, Ms. Dikshya Singh, Research Officer at
SAWTEE, pointed out lack of timely and reliable availability of fertilizers is
the major reason for farmers in these border areas to buy fertilizers from
across the border. Moreover, difference in price, almost 20 per cent less in
India than in Nepal due to Indian government’s subsidy, seem to be prompting
Nepali farmers to buy fertilizer from India, she added. Likewise, study also
found that farmers are buying restricted Indian varieties due to better
productivity of those varieties.
While
presenting the scenario at the Indian side, Mr. Suvayan Neogi, Research
Associate at CUTS International pointed out that the Indian farmers at the
border buy wheat seeds from Nepal in the similar manner due to Nepali seeds
better productivity.
During
the programme, experts emphasized the need for providing timely inputs such as
seeds and fertilizers to farmers so that their informal trade could be
minimized at the Nepal-India border, during an interaction organised here
today.
Speaking
during the programme, Dr. Yogendra Kumar Karki, Joint Secretary, Ministry of
Agriculture Development explained that the biggest cause of informal trade is
the gap between what is needed and what can be provided by the government,
especially in the case of fertilizers. He also acknowledged the procedural
hassles related to approving and registering new seed varieties that have encouraged
the farmers to buy unregistered seeds from across border, which at times result
in bad harvest. Dr. Karki further said that the government is willing to
provide monetary support to private companies willing to produce agri-tools and
equipment.
Similarly, Mr. Rabi Shankar Sainju, Joint
Secretary at the Ministry of Commerce added that the policies to curb informal trade
exist but the institutionalization of those polices is weak resulting in their implementation
difficult. He pointed out that the most suitable way to formalize the informal
trade at borders could be organizing border haats
where farmers and traders from both sides could buy and sell necessary items up
to certain volume. He further said that the Department of Customs is expediting
the process of implementation of the single window system which will coordinate
with about 64 government institutions to smoothen the border trade.
Mr. Purushottam Ojha, Former Commerce
Secretary emphasized that Sanitary and Phyto- sanitary (SPS) measures are
important as poor quality seeds have the potential to destroy the harvest of a
whole village. Therefore, it is necessary to strengthen SPS measures and
harmonize it with India so that it does not deter formal trade. He further
added that the non-tariff barriers to trade is a culprit that contributes
substantially to informalization of Nepal-India trade.
Dr. Posh
Raj Pandey, Executive Chairman of SAWTEE was of the view that trade
facilitation in frontier trade, separate from international trade, and
differentiating procedural requirements for agricultural products can reduce
informal trade at border areas. He proposed the formation of an autonomous
Standards Authority to oversee the SPS and technical-barriers to trade (TBT)
related matters to facilitate the seamless trade which shall help formalize our
trade with India. He further said that it will be wise to improve our agriculture
productivity than to increase agriculture subsidy as Nepal do not have resources
to provide agriculture subsidy at par with India.
Participants
of the programme pointed out the need to regulate the amount of pesticides and
other similar agro-chemical that enters Nepal in informal manner. The need to educate
farmers on the health hazards of fertilizers was also emphasized.
The
programme saw the participation from about 30 persons including representatives
of state-backed agriculture inputs supplier, seed regulatory authority, farmers
and consumer associations, media and the private sector.
Programme Agenda
Background Note
Presentation:
Ms. Dikshya Singh, Research Officer, SAWTEE
Linkages
and Impacts of Cross-Border Informal Trade in Agricultural Inputs
Presentation:
Mr. Suvayan Neogi, Research Associate, CUTS International
Extent of Informal Trade in
Agricultural Inputs –Case of Indo (Bihar)-Nepal Border
Media Coverage
