Onion Shortage in Nepali Markets Due to India's 40% Export Tariff

In the wake of India's imposition of a 40 percent tariff on onion exports, traders have ceased importing onions into Nepal. This move has had significant repercussions, particularly in major markets like Kalimati.

The shortage of onions in Kalimati and other key markets became pronounced after India's decision to enforce a 40 percent customs duty on exported onions from their country on Bhadra 11.

Initially, there was sporadic trading of onions on Saturdays and Sundays. However, since Monday, both import and sales of onions have come to a standstill, as reported by the Kalimati Fruits and Vegetables Market Development Committee.

In Kalimati, a market housing 80 potato and onion shops, every single shop has now run out of onions. The scarcity of onions has made it impossible to establish a stable price for this essential commodity.

Traders operating in potatoes and onions in the Kalimati and Kathmandu regions have disclosed that their Indian counterparts refrained from selling onions following India's imposition of the export tax. This uncertainty in the market has hindered the ability to source fresh onion supplies.

The available onion stocks have been depleted, and there is currently no foreseeable prospect of onions re-entering the market without a resolution to the import issue.

On Sunday, the wholesale price of onions in the Kalimati market stood at Rs 61 per kg. However, as the afternoon wore on, onion prices began to fluctuate arbitrarily. Consequently, the Commerce Department intervened and halted the supply of onions in the market.

The Department of Commerce has raised concerns that, despite the export tax imposed by India, previously imported onions may be concealed in the market. Stringent actions will be taken if evidence of a black market for onions is discovered.