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VOL. 28, NO. 23, March 06, 2009 (Falgun 23 2065)
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FOOD PRICES
Painful Fluctuations
Food prices are expected to remain volatile in 2009 in Nepal
By A CORRESPONDENT
Food prices in Nepal will continue to remain volatile in 2009 if cost drivers which were responsible for the high prices last year persist, the United Nations World Food Programme (WFP) said.
Domestic cost drivers which caused prices to rise by as much as 40 percent on some food stuffs in 2008 were bandhs and blockades, high transportation costs and transport syndicates. The year-on-year food and beverage inflation in Nepal was approximately 17 percent compared to India's inflation rate of approximately 10 percent.
"Global food prices and, more importantly, prices in India will also have an impact on food prices in Nepal," said Richard Ragan, WFP country director. According to the WFP 2008 Nepal Staple Food Market Review and Outlook for 2009, the global food crisis will largely persist through 2009 and stock levels in Nepalese and Indian feeder markets are relatively low.
"Therefore, the possibility of further sharp price hikes and continued volatility seems to be likely for the next few seasons -- particularly in areas with limited road access and prone to natural disasters," the review says. Further, the fact that fuel prices in Nepal have not come down at the same rate as in the international market has continued to drive up food prices.
According to spokesman of the Ministry of Food and Agriculture Dr. Hari Dahal the current climate change has brought about an unprecedented crisis in agriculture and food prices could increase in 2009.
"There is a possibility that the lack of rainfall will lower the production of wheat," Dahal said. "This could affect food security and cause price hike." According to him last year Nepal was marginally self sufficient in food but 41 hill and mountain districts are usually food deficient. Fuel prices in Nepal were about 10 percent higher in December 2008 compared to the same time last year while international prices had fallen by more than half over the same period. Food speculation in the international market could also drive up prices in 2009, according to the WFP.
The major reasons behind the rise in food prices in 2008 were high reliance on imports when food prices were rising globally, the Indian ban on key food commodities, high transportation costs, reduced road access caused by natural disasters, civil unrest and a poor base of food stocks. The WFP is the largest buyer of cereals in Nepal. Last year, it bought 60,000 tons of food grains to distribute to Bhutanese refugees and in food deficit areas across Nepal. In December, the WFP had identified 2.7 million people as requiring urgent food assistance to curtail malnutrition; and this figure could increase by 3.7 million if prices increase again in 2009.
Nepal is unlikely to overcome in the near future the challenge of increasing agricultural production and reducing reliance on imports, the WFP review said. "A lot more investment is needed in agriculture, farmers need to be incentivize, irrigation systems need to be developed and prices for farmers should be collectivized," said Ragan.
Meanwhile, the government of Nepal has said it is all set to intervene in the market to sell/distribute essential foodstuff in discounted price. The government made the decision after the market price did not come down in Nepal despite the price decrease in international market.
The government will sell rice, sugar, wheat flour depots of Nepal Food Corporation and Salt Trading Corporation. Purushottam Ojha, Secretary at the Ministry of Commerce, said, “The government is selling the stuffs in discounted price in order to control market price through increased supplies.” The current rate of inflation in the country is hovering around 14 percent.
PRACHANDA ON PALACE PROBE
Eight years after the first article written by then rebel leader and current finance minister Dr. Baburam Bhattarai on June 6, 2001 blaming foreign intelligence agencies’ involvement in Royal Palace massacre of June 1, 2001, prime minister and his leader Pushpa Kamal Dahal Prachanda has announced that he will form high level probe committee to find out the fact.
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“After CIA (and the recently opened FBI branch in Delhi) approval, RAW (Research and Analysis Wing- the Indian covert intelligence and operation agency) came up with a grand master plan to annex Nepal. Just like the cunning fox of folk-lore who stole the chickens by falsely shouting that an eagle was arriving, RAW too created a fake tale about the ISI (Inter Service Intelligence- the Pakistani cover intelligence and operations agency) being active in Nepal and having penetrated the Palace. And it is through that Jigme Singye that the massacre was carried out. There should not be any doubt that RAW, which had already found their Lendup Dorje (the Sikkimese leader who collaborated with India during the annexation of Sikkim) in Girija (the current pro-Indian Nepali Congress Prime Minister), aligned with the new Jigme Singye for the Bhutanization of Nepal, with a goal of eventual Sikkimization of Nepal,” read the article written by Dr. Baburam Bhattarai, which was published in Kantipur on June 6, 2001. (See the article Let’s Not Legitimize the New Kot Massacre in the book Monarchy vs. Democracy by Dr. Baburam Bhattarai.)
After the publication of this article, then editor of Kantipur daily, Yuba Raj Ghimire was arrested and put behind bar by then home minister and Nepali Congress leader Ram Chandra Poudel.
Last week, inaugurating the Royal Palace Museum, prime minister Prachanda declared to open the mysterious case and the very next day meeting of leaders of five ruling parties endorsed Prachanda’s announcement. Whether it was just coincidental or intended, the announcement came when former King Gyanendra was on his maiden visit to India to attend marriage ceremony of his relative. But the Maoist leaders have also doubted the intention of his visit to India.
“We have reports that former king Gyanendra is seeking support from Indian leaders to bring back monarchy in Nepal,” said prime minister Prachanda. Prime minister Prachanda may have valid sources as he has openly revealed that he had lived eight years in India out of 10 years of insurgency.
If PM Prachanda’s announcement will be implemented, finance minister Dr. Bhattarai’s article may give some clues to start that investigation. Although many evidences may have disappeared, it can reveal some facts to get closer to the culprit.
PALACE MASSACRE TO BE REOPENED
The 2001 Royal Massacre in which the family of the then King Birendra Shah was assassinated will be re-investigated, Prime Minister Pushpa Kamal Dahal said while inaugurating the palace-turned Narayanhiti Museum on Thursday.
Stating the royal genocide was the commencement of impunity in the country, he committed that the people will not be deprived of the right to know the inside story of the massacre. “Former King Birendra used to be known as the most liberal one amongst other Shah Kings. People still respect Birendra," he said.
He said, "Being the first prime minister of federal democratic republic of Nepal, I pledge to all of you that the royal massacre will be investigated again and the clear picture of the incident will be brought to the public."
The museum has been opened for the general public from Friday (Feb 27). Narayanhiti Palace Museum, the residence of former royals, has been turned into the museum after nine months of the declaration of Republic in the country. According to the management committee, the museum will be open for five days a week except Tuesday, Wednesday and on public holidays.
