Onion crisis in Nepal after India imposes customs duty on exports

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Kathmandu, August 23

There is an onion crisis in the market after importers stopped bringing in onions following India slapping a 40 per cent customs duty on onion exports until December 2023.

Binay Shrestha of Kalimati Fruits and Vegetables Market said all shops had run out of onions after import stopped.

Nepali traders say Indian traders have refused to sell onions to Nepal after its government imposed a 40 per cent duty on onions.

“The Indian government brought this rule quite suddenly and many businesses are choosing not to export it, said Prakash Gajurel of Nepal Agricultural Produce and Potato, Onion Import Export and Wholesalers Association.

He said the availability of onions will now depend on how smooth import is he said.

The price of onions had already increased significantly with shops charging as they pleased on Monday.

The Department of Commerce, Supplies and Consumer Protection, however, said traders might have stopped selling onions to increase the price and said it will monitor and take action if it finds people hiding onions.

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