Food Management and Trade Company expands wheat procurement in Kailali

Food Management and Trade Company Limited has begun wheat procurement operations in Kailali district through its provincial office in Dhangadhi, increasing sourcing activity aimed at supporting agricultural supply management and food security. For procurement stakeholders, the programme demonstrates how public purchasing frameworks are being used to strengthen domestic supply chains and improve producer participation in essential commodities.

The Rising Nepal reported that wheat procurement commenced through the company’s Mohanpur and Tikapur storage facilities, where wheat is being purchased from farmers and agricultural cooperatives. The state-owned company said it is offering a procurement price of NPR4,250 per quintal (€29.20), above the government’s minimum support price of NPR3,945 (€27.10) per quintal.

According to office chief Deepak Thapa, the organisation has established a procurement target of 10,000 quintals for the district. The programme also includes sourcing limits of up to 70 quintals from individual farmers and a maximum of 500 quintals from agricultural cooperatives to support structured supplier participation.

The procurement process includes eligibility requirements intended to verify suppliers and maintain oversight of commodity sourcing. Farmers are required to provide identification documents, ward certification or recommendations and self-declaration forms before participating in the programme.

The initiative follows lower-than-expected purchasing volumes in the previous year, when the district recorded a procurement target of 5,000 quintals but secured only 52.5 quintals. The expanded quota and revised pricing structure suggest efforts to improve supplier participation and procurement effectiveness while supporting domestic agricultural output.

For national procurement stakeholders, the programme illustrates the role of strategic sourcing in stabilising supply, improving supplier engagement and supporting public food management systems.

Read more on Kailali’s wheat procurement programme.