Challenges in Nepalese Vegetable Export to India: Testing and Infrastructure Constraints

Thu, Jul 20, 2023 8:22 AM on Economy, National, Latest,

Indian vegetables are imported into Nepal through lab tests at Nepal's customs border, but Nepalese vegetables are forced to travel from Lucknow to Kolkata to be tested.

On Ashad 31, BBC Hindi published a report about the smuggling of Tomato from Nepal to India. In that report, an attempt was made to establish the notion that there is unlimited vegetable production in Nepal, and it is being smuggled to capture the Indian market. However, the reality is quite the opposite.

In reality, Nepal is importing various vegetables from India without any barriers. At main checkpoints, there are quarantine labs where vegetables are imported after undergoing pesticide testing, although many vegetables are imported without such testing.

On the other hand, exporting Nepali vegetables and agricultural products to India is not as simple. India lacks any plant quarantine labs at its customs points. Therefore, Nepali goods must travel to the capital of the respective Indian state to which they are to be exported for testing. For instance, to export to Uttar Pradesh, testing must be done in Lucknow, and for West Bengal, it must be done in Kolkata.

Furthermore, India does not accept the certificates issued by Nepal's labs, making it challenging to export perishable goods like vegetables and fruits from Nepal to India.

As to why Nepalese vegetables have a presence in the Indian market, a businessman was quoted as saying, "The limited production of vegetables in Nepal prevents capturing the Indian market. Lack of lab testing facilities near the India-Nepal border means that vegetables, which perish quickly during transportation, will rot. Thus, Nepalese and Indian traders sometimes resort to informal channels to send vegetables to India. However, it is not feasible to sell vegetables in large quantities in Nepal due to low production and high costs."

While there are sufficient border infrastructures to bring Indian vegetables into Nepal, the lack of testing facilities near the Indian border for Nepali vegetables poses a significant challenge.

A businessman named Prakash Gajurel, dealing in vegetables at Kalimati market, was quoted as saying, "When importing vegetables from India, the pesticide residues are checked at the customs office on the Nepal-India border or at the nearest Plant Quarantine and Pesticide Testing Center. Examinations are conducted at locations such as Bhairahawa, Birgunj, Nepalgunj, Janakpur, and other major cities in Nepal. The pesticide residue is checked within 6 to 7 hours after the vehicle arrives at the customs yard." Among the vegetables that come to Nepal from India or anywhere else, except cabbage (banda) and squash (iskus), they enter Nepal with the minimum agricultural reform fee.

Nepal checks pesticide residues in vegetables and fruits at customs checkpoints in Kakarbhitta, Biratnagar, Jaleshwar, Birgunj, Nepalgunj, Bhairahwa, and Dhangadhi to inspect the pesticides in vegetables imported from India. Additionally, pesticide testing has been initiated at Tribhuvan International (TIA) Customs Office, Tatopani Customs, Rasuwagadhi, Krishnanagar, and Gaddachauki, Chobhar Dry Port, Sirsiya Dry Port.

Although inspecting Indian vegetables has become easier due to pesticide checks at nearly every checkpoint towards Nepal, there is no infrastructure near the Indian border to conduct testing on Nepali vegetables.

According to the Food Technology and Quality Control Department, 62,000 samples of vegetables and fruits entering Nepal were checked in the fiscal year 2079/80.

Dr. Matina Joshi Vaidya, the director general of the department, was quoted as informing, "There are infrastructures at 12 major checkpoints in Nepal. Eight labs are located on the Nepal-India border, and two are situated on the Nepal-China border. Bhairahawa and Tribhuvan International Airport Customs have one lab each, and the remaining eight offices are located in the Nepal-India border area."

Dr. Joshi was quoted as mentioning an agreement made between India and Nepal in 2019 regarding pesticide testing of vegetables and fruits in Nepal. The agreement includes provisions for exporting vegetables and fruits to the Indian market based on the Nepali lab report. However, the practical implementation of this agreement, despite being made at the highest level of the government, has not been realized. The department stated that an MoU is being prepared after reaching an understanding with all three agencies involved.

The Ministry of Agriculture and Livestock Development has taken initiatives to facilitate the easy export of Nepalese vegetables, fruits, and tea.

India occasionally updates the list of goods it imports and exports to its country, based on the production of an item in India, demand, and supply in the market. Fruits and vegetables produced in Nepal are often removed from India's import list.

Shavanam Sivakoti Aryal, head of the Agriculture and Livestock Business Promotion Division of the Ministry, was quoted as stating that continuous inclusion of Nepali export items in India's import list is crucial for enabling their export. Currently, only cabbage (banda) and squash (iskus) among green vegetables are listed for quarantine export from Nepal to India. The ministry is working to include green seasonal vegetables such as peas and golbheda on that list.

As per the details from the Customs Department, Nepal imported vegetables worth Rs. 29.6 Arba in the first 11 months of the fiscal year 2079/80. Green vegetables rank as the 12th major imported item. However, Nepal only exported vegetable products worth Rs. 64 crores 42 lakhs during the same period.

During this time, Nepal imported fresh sheep worth Rs. 61 crores from India but did not export even one rupee.

India has a trade deficit of Rs. 28 Arba 96 crores concerning Nepal's green vegetables alone.

(Disclaimer: The article is a translation based on an original article. Consistency in information has been maintained for accuracy.)