India bans Nepali agricultural products, stops fuel supply
Friday, 14 September 2007
KATHMANDU, Sept 13 (Xinhua): India has banned the import of agricultural products from Nepal, the National News Agency (RSS) reported today.
Director general of the Foreign Trade Office informed the Nepali Mechi Customs Office yesterday about the ban.
According to the RSS, two truck-load of tea produced in Ilam district was stopped from entering into India by the Indian customs officials yesterday.
The Indian side has put a ban on the Nepali agricultural products arguing that it was done as per popular demand, said Tea Producer Hari Timsena.
However, Nepali farmers have claimed that the Indian side has done so after the popularity of Nepali products increased in the Indian market due to its good quality.
The sudden ban on Nepali agricultural products has also hampered the export to the third countries. Agriculture produce of Ilam and Jhapa districts in eastern Nepal are also exported to Bangladesh, Sri Lanka, Bhutan and other countries via the Kakarvitta transit point.
Meanwhile, thousands of cars and motorbikes formed long queues at petrol pumps in Nepal's capital today after officials warned of a looming fuel shortage after a failure to their oil and gas bills.
Landlocked Nepal has no oil reserves and relies on giant southern neighbour India to truck in petrol, gas and other fuel. But supplies have been tightened after the impoverished Himalayan country failed to pay its bills.
"Over the past few weeks, the Indian Oil Corporation has cut the supplies by 40 to 60 per cent to us as we have not been able to pay overdue bills," said Iccha Bikram Shah, a spokesman at the state-run Nepal Oil Corporation.
"The stock we have now would last for just two to three days more," he told AFP.
The Nepal Oil Corporation, a monopoly, sells fuel products at a loss, and as a result has monthly loss of 3.84 million dollars. It currently owes the Indian Oil Corporation (IOC) 45.7 million dollars.
Shah said Nepal's government "needs to provide funds to us to pay to the IOC, or they should increase the price of petroleum products," Shah said.
Last August the government tried to increase the price of petroleum products by up to 25 per cent, but backed down from the move after two days of protests at the price hike.
Director general of the Foreign Trade Office informed the Nepali Mechi Customs Office yesterday about the ban.
According to the RSS, two truck-load of tea produced in Ilam district was stopped from entering into India by the Indian customs officials yesterday.
The Indian side has put a ban on the Nepali agricultural products arguing that it was done as per popular demand, said Tea Producer Hari Timsena.
However, Nepali farmers have claimed that the Indian side has done so after the popularity of Nepali products increased in the Indian market due to its good quality.
The sudden ban on Nepali agricultural products has also hampered the export to the third countries. Agriculture produce of Ilam and Jhapa districts in eastern Nepal are also exported to Bangladesh, Sri Lanka, Bhutan and other countries via the Kakarvitta transit point.
Meanwhile, thousands of cars and motorbikes formed long queues at petrol pumps in Nepal's capital today after officials warned of a looming fuel shortage after a failure to their oil and gas bills.
Landlocked Nepal has no oil reserves and relies on giant southern neighbour India to truck in petrol, gas and other fuel. But supplies have been tightened after the impoverished Himalayan country failed to pay its bills.
"Over the past few weeks, the Indian Oil Corporation has cut the supplies by 40 to 60 per cent to us as we have not been able to pay overdue bills," said Iccha Bikram Shah, a spokesman at the state-run Nepal Oil Corporation.
"The stock we have now would last for just two to three days more," he told AFP.
The Nepal Oil Corporation, a monopoly, sells fuel products at a loss, and as a result has monthly loss of 3.84 million dollars. It currently owes the Indian Oil Corporation (IOC) 45.7 million dollars.
Shah said Nepal's government "needs to provide funds to us to pay to the IOC, or they should increase the price of petroleum products," Shah said.
Last August the government tried to increase the price of petroleum products by up to 25 per cent, but backed down from the move after two days of protests at the price hike.