For Nepal, with a GDP per capita of approximately $1,377, developing new agricultural export markets offers potential for job creation and income growth for farm families, which comprise about two-thirds of the country's 31 million population.
To access high-value markets, Nepal must meet sanitary and phytosanitary standards to ensure products like ginger, cardamom, and fruits are pest-free and safe. Previously, Nepal could not meet these standards, limiting export opportunities.
Recently, a team from Australia's Department of Agriculture, Fisheries and Forestry visited Kathmandu to train and certify Nepal's personnel in pest treatment. Over four days, more than 40 Nepali participants were trained, enabling Nepal to explore new trading opportunities. Prakash Paudel, Senior Plant Protection Officer at Nepal's Plant Quarantine and Pesticide Management Centre, stated, "The level of training provided by Australia is very thorough and equivalent to other country requirements."
Inspectors like Paudel now oversee treatments at a facility near Kathmandu, refurbished under a World Bank-funded project. Previously, exporters had to ship goods outside Nepal for treatment, incurring additional costs and uncertainties. This issue was highlighted when a rice shipment to Australia was found to have pests.
Nepal's reliance on India for exports is partly due to the lack of domestic treatment facilities. With 54% of exports being agricultural and 20% handicrafts, the new facility reduces costs and increases reliability, enabling Nepali traders to explore markets in Australia, China, and the United States.
Nepal's International Trade Centre estimates potential sales increases to Australia and the United States, with ginger exports to Germany possibly doubling. The government aims for the facility to be managed by private companies through a public-private partnership.
The World Bank's support for Nepal's trade efficiency is part of its US$801 million Strategic Road Connectivity and Trade Improvement Project, funded by several international partners.
Source: World Bank Blogs