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Inflation moderated to 3.85 percent in mid-September compared to 8.19 percent a year ago. 

According to the Current Macroeconomic Situation Report for the first two months of fiscal year 2024/25, food and beverage inflation eased to 5.03 percent, compared to 9.77 percent last year, while non-food and service inflation dropped to 3.19 percent from 7.19 percent. 

Among food items, the price of pulses and legumes saw the highest increase at 10.8 percent, followed by vegetables at 9.84 percent and cereal grains at 9.34 percent. However, the price of spices decreased by 2.69 percent. In the non-food category, the price of miscellaneous goods and services increased by 8.71 percent, while clothing and footwear saw a 6.08 percent rise.

Inflation was highest in Sudurpashchim Province at 5.90 percent, while the Kathmandu Valley recorded an inflation rate of 3.49 percent, according to the report.

Trade deficit widens

Nepal’s trade deficit widened in the review period as imports recorded nominal growth, while exports declined. According to the report, Nepal’s merchandise exports contracted by 5.1 percent to Rs 25.09bn during the first two months of 2024/25, compared to a 7.8 percent decline in the same period last year. While exports to India decreased by 4.5 percent, exports to China plummeted by 45.3 percent. Exports of key products like cardamom and zinc sheets fell, although products like tea and shoes saw growth.

On the import side, merchandise imports increased by 1.1 percent to Rs 262.54bn. Imports from China surged by 11.9 percent, while imports from India fell by 0.1 percent. The trade deficit widened by 1.8 percent to Rs 237.45bn in the two-month period. 

Remittance inflows surge

Remittance inflows saw a strong growth of 15.2 percent to Rs 263.14bn over the first two months of 2024/25. In the first month of the current fiscal year, Nepalis in foreign countries sent home Rs 136.93bn.

In US dollar terms, remittance inflows reached $1.96bn, up from $1.73bn in the same period last year. 

The number of Nepali workers taking foreign employment approval also increased during the review period with 76,485 youths taking first-time approval for foreign employment.

Foreign exchange reserves improve

The gross foreign exchange reserves grew by 5.5 percent to Rs 2,152.53bn as of mid-Sept 2024, up from Rs 2,041.10bn in mid-July 2024. In US dollar terms, reserves increased to $16.04bn. 

The foreign exchange reserves are sufficient to cover 16.8 months of prospective merchandise imports and 13.7 months of merchandise and services imports, according to the report

BoP, current account in surplus

The Balance of Payments (BOP) was in a surplus of Rs 101.77bn in the review period, up from Rs 55.1bn in the corresponding period last year. 

The current account also remained at a surplus of Rs 49.69bn, compared to a surplus of Rs 23.97bn in the previous year.

On the fiscal front, government expenditure increased by 4.9 percent to Rs 137.55bn in the first two months of 2024/25. The recurrent expenditure and capital expenditure remained at Rs 82.99bn and Rs 14.89bn, respectively. While recurrent expenditure fell by 5.3 percent, capital expenditure improved by 82.4 percent compared to last year. Revenue collection recorded a growth of 17.9 percent to Rs 166.39bn during the period. Tax revenue increased by 13.5 percent to Rs 145.19bn, while non-tax revenue surged 71.5 percent to Rs 21.19bn compared to last year.

We are celebrating the 44th World Food Day today. The slogan for this year is ‘Right to Food for a Better Life and Better Future’. Meanwhile, food security is becoming a critical global issue. Factors such as extensive wars in the Middle East, the conflict between Russia and Ukraine, internal strife, mass migrations, Covid-19, bird flu, other pandemics, and—most significantly—climate change are exacerbating food scarcity worldwide.

Despite the Sustainable Development Goal (SDG) to end hunger by 2030, one in 11 people experienced hunger in 2023. This figure continues to rise, driven by internal conflict in Sudan, the ongoing war in the Middle East, farmer protests and wildfires in Europe, instability in South America, and political unrest in South Asia. Additionally, record-breaking temperature increases, extreme rainfall leading to landslides and floods, reduced rainfall frequency, and growing infestations of insects and pests are heightening the risk of food shortages. As a mountainous agricultural country heavily dependent on irrigation and affected by misguided policies, Nepal faces an even greater threat of food insecurity.

In Nepal, all four food systems—agriculture, forestry, aquaculture, and fisheries—are under threat due to development-focused, productivity-centric plans and policies. The country’s increasing reliance on agricultural imports, coupled with extreme climate conditions, poses a significant risk to food security. Recently, record-breaking rainfall in Nepal caused substantial agricultural losses, with the government estimating a Rs 6bn loss in the sector. Floods devastated paddy crops during the harvest season, causing immense hardship for farmers. Paddy, which is highly vulnerable to climate extremes, continues to be promoted by the government over more resilient crops. Some of the biodiversity losses I encountered last year include the following:

Case I: In a recent discussion with the Chepang community of Ichhyakamana Municipality, I discovered that the Chepangs are no longer consuming Canna (Canna discolor), commonly known as ful tarul. Canna used to be abundant in every Chepang village, and they regularly ate its rhizomes by either boiling them or making alcohol from them. These roots were once a staple food source for the Chepang people but have now been replaced by rice, which has become the primary food in every Chepang household.

Case II: Last September, while in Kaushe, Sindhuli district, I fell ill with a fever and wanted to have millet soup. When I asked for finger millet flour, I was surprised to learn that millets had gone extinct in that area. The locals explained that they once cultivated millets, but with the introduction of proper irrigation, millet was replaced by paddy. Now, no one grows millets there.

Case III: In my hometown of Molung, Okhaldhunga, we used to grow Niger (Guizotia abyssinica), locally called Jhuse til, as an intercrop with millets. However, over the last decade, Niger has vanished from the area. During the last Dashain, I visited several households in the village in search of Niger seeds but found none. After an extensive search, I finally obtained 1 kg of seeds from the nearest market in Rampur.

These cases illustrate the decline of traditional crops and species due to faulty agricultural extension services and the increasing influence of private companies on the sector. Rather than promoting the comparative advantage of our geographic diversity, the government invests in chemical inputs and imports hybrid seeds, disrupting long-standing local production systems. As a result, production costs have risen, and many farmers are abandoning agriculture. In 2023, our imports decreased compared to the previous year, a statistic shared with pride by officials. However, the real reason for this reduction was the export restrictions imposed by other countries. Last year, India restricted rice exports, causing prices to spike, and the Nepali government had to plead with India to ensure a steady supply. This situation highlights our vulnerability to food insecurity and underscores the urgent need for a transformation in our food systems.

By definition, food system transformation involves the radical rethinking of the key outcomes of food systems. In Nepal’s context, this transformation can be achieved through the localization of food systems, returning to self-sustained production practices, and strategically leveraging the country’s geographic advantages. The Constitution of Nepal, 2015, guarantees the right to a local food system as a fundamental right. Based on this provision, the Right to Food and Food Sovereignty Act, 2018, and its accompanying regulations in 2023 were formulated. However, implementation has been weak. While the increasing share of remittances in the GDP has improved food security statistics, this improvement remains fragile and temporary.

Masanobu Fukuoka, an activist, farmer, and agriculturist, asserts that food grown nearby is best for human beings, while food obtained through struggle tends to be the least beneficial. He also emphasizes that food and medicine are not separate entities but rather two sides of the same coin. Yet, in our discussions of food security, we often focus solely on food availability, neglecting important factors like food quality, cultural relevance, and consumption patterns. This oversight has contributed to a rise in non-communicable diseases such as cancer, diabetes, and high blood pressure.

Recently, a report from BP Koirala Memorial Cancer Hospital in Chitwan highlighted a concerning trend: while the number of new patients decreased in 2023, the overall number of cancer patients increased. Similar patterns are being observed in other hospitals across Nepal, raising alarm. Despite the policy focus on food sovereignty, critical aspects of food security—accessibility, utilization, and stability—have often been overlooked in practice. This presents a major challenge for Nepal, requiring urgent attention and action.

In the past, Nepal followed a self-sufficient family farming model, but policies and agricultural development strategies labeled it as ‘subsistence agriculture’. The concepts of modernization and productivity dominated policy papers and development agendas. Despite large government investments in subsidies, productivity did not increase significantly. The government introduced chemicals, fertilizers, and hybrid seeds, applying a one-size-fits-all approach to Nepal’s diverse agricultural regions. Although the government celebrated an increased seed replacement rate as an achievement, this came at the cost of losing rich biodiversity, adaptive indigenous knowledge, and local regenerative seeds. Today, we face a severe risk of food insecurity, a rise in non-communicable diseases, and heightened climate vulnerability.

We are in a crisis, but it is not the end. There remains a generation of farmers who possess knowledge of self-sufficient production systems. In local areas, many farmers still preserve regenerative seed varieties, and in rural regions, traditional cropping practices, which are more climate-resilient, are still in use. In so-called ‘undeveloped’ areas, we see diversified local food consumption systems that can serve as a foundation for sustainable development. What we need now is to document this invaluable knowledge, conduct research to enhance the productivity of these practices, create proper plans, and invest in expanding sustainable agricultural methods.

With systematic production planning, government-supported value addition technologies, and agro-tourism, we can harness the comparative advantages of a self-sustaining, chemical-free production system. Achieving this requires a unique food system transformation tailored to Nepal’s needs—one that prioritizes sustainability, resilience, and the preservation of indigenous agricultural knowledge.

The author is an agroecology researcher at Forestaction Nepal

National Assembly (NA) Chairman Narayan Prasad Dahal held bilateral meetings with the President of the National Council of Switzerland, and the leaders of parliamentary delegations from India, China, Thailand, and the Philippines on the sidelines of the 149th Assembly of the Inter-Parliamentary Union (IPU), in Geneva, Switzerland on Tuesday.

Dahal is currently in Geneva, leading the Nepali delegation to the IPU 149th Assembly.

Chairperson Dahal held a bilateral meeting with Eric Nussbaumer, President of the National Council of Swiss Confederation. The two leaders expressed commitment to enhancing inter-parliamentary exchanges and cooperation in areas of climate change, mountain conservation and disaster risk reduction, strengthening federalism, and the Swiss development cooperation in Nepal including in the peace process, the Permanent Mission of Nepal to the United Nations and Other International Organizations in Geneva said in a press release.

Later in the evening, Chairman Dahal held a bilateral meeting with the leader of the Indian delegation, Lok Sabha Speaker Om Birla. Discussions focused on promoting cooperation in the bilateral, regional and multilateral fronts to strengthen democratic institutions.

Earlier today, the National Assembly Chair held a bilateral meeting with the leader of the Chinese delegation Tian Xuejun. The two sides discussed the need for parliamentary exchanges and cooperation to address the common challenges such as climate change, inequality and digital divide while contributing to promoting peace and stability.

During the bilateral meeting with Mongkol Surasajita, President of the Senate of Thailand, Dahal emphasized the historical and cultural ties between Nepal and Thailand deep rooted in the ideals of Buddhism. The two leaders discussed enhancing parliamentary exchanges and cooperation to promote peace, democracy and development.

The Chairperson of the National Assembly of Nepal also held a bilateral meeting with Ferdinand Martin Romualdez, Speaker of the House of Representative of the Republic of the Philippines and discussed promoting inter-parliamentary cooperation to promote peace, democracy and development in the world.

Dengue is spreading rapidly with the number of infected people reaching 19,599 throughout the country, according to the latest data of the Epidemiology and Disease Control Division (EDCD).

The EDCD said nine people have died of the disease so far and it has spread in 76 districts of the country. Dengue has spread the most in Kathmandu with 3,103 cases, followed by Kaski with 2,847 cases, Tanahun with 2,107 cases and Parbat with 1,562 cases.

Similarly, Chitwan reports 971 cases, Lalitpur 827 cases, Gorkha 588 cases, Baglung 610 cases, Bhaktapur 355 cases and Syangja 335 cases.

Dr Sher Bahadur Pun, Research Unit Coordinator at the Shukraraj Tropical and Infectious Disease Hospital Teku, said that the risk of dengue rises with the beginning of the post-monsoon period.

According to him, the number of people suffering from dengue is increasing immediately after Dashain. This indicates that dengue is spreading at the community level.

Dengue was confirmed in more than nearly 52, 000 people throughout the country from April 14, 2023 until January 14, 2024. Twenty people had died of the infection in that period.