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Bhutan faces grain shortages, spike in prices: Finance minister

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KATHMANDU: Rising fuel import costs and global grain shortages have led to a spike in domestic prices, posing a risk of food scarcity for people in Bhutan, especially in the rural areas, economic affairs minister Loknath Sharma told Reuters on Thursday (May 26). Bhutan, with a population of less than 800,0

KATHMANDU: Rising fuel import costs and global grain shortages have led to a spike in domestic prices, posing a risk of food scarcity for people in Bhutan, especially in the rural areas, economic affairs minister Loknath Sharma told Reuters on Thursday .

Bhutan, which depends on imports to meet food demand, imported cereals amounting US$30.35 million, mainly rice and wheat from India, in 2021. A strict zero-COVID policy and vaccination of over 90 per cent of the population has hurt economic growth in Bhutan, nestled between China and India, including by stoking inflation and curbing the inflow of tourists, a World Bank report said last month.

"About 29 per cent of households are still worried about running out of food. Of these, almost half curtailed food consumption as a precautionary measure," the report said, adding that those in rural areas were more likely to eat fewer meals or skip them.

 

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