Rice smuggling surges at India-Nepal border

Villages along the India-Nepal border are witnessing a surge in rice smuggling, with residents making daily journeys on foot or in vehicles to deliver rice to Nepali traders.
These carriers, ranging from unemployed youth to the elderly, earn up to Rs 300 for transporting a quintal of rice to warehouses across the border. Villages like Lakshminagar, Thoothibari, and Nichlaul have become hotspots for this activity.
The surge is linked to the recent ban on non-basmati white rice exports by the Indian government in July. This move aimed to bolster domestic supplies and stabilise prices during the festive season. However, it led to skyrocketing rice prices in Nepal, with rates reaching up to Rs 70 per kilogram, almost four times the cost in India.
Local trader Suraj Jaiswal notes, “Rice sold here for Rs 15-20 per kilogram now fetches up to Rs 70 in Nepal.” The lucrative price difference has emboldened smugglers, who profit significantly even after paying carriers.
This illicit trade has repercussions for local Indian markets. Ratan Lal Vaishy of Uttar Pradesh Udyog Vyapar Pratinidhi Mandal remarked that rice prices have almost doubled, from Rs 15-20 per kilogram to Rs 30-35, due to rampant smuggling.
Despite heightened efforts by authorities, including the deployment of special teams to monitor the border, smuggling continues to flourish. Maharajganj District Magistrate Anunaya Jha emphasised coordination with the Sashastra Seema Bal (SSB) in their crackdown on these operations.
Over the last four months, officials seized more than 111.2 tonnes of rice smuggled into Nepal. Yet, the allure of profit keeps many in this risky business, making the India-Nepal border a continued area of concern.