Onion Shortage in Nepal as India Imposes Export Duty

Nepal is grappling with an onion shortage after India imposed a 40 percent export duty on the commodity. The Kalimati Fruit and Vegetable Market in Kathmandu, a major supplier of fresh produce, removed onions from its price list due to dwindling supplies from India.

The price of onions in Nepal has surged from Rs 50 to Rs 90-100 per kg following the export duty implementation, impacting the festive season when onion consumption spikes. Usually importing around 100 tons of onions, the market’s intake dropped to 40 tons recently, prompting exporters to halt imports. Nepal heavily relies on Indian onion imports, having brought in 180,190 tons of onions worth Rs 6.75 billion in the previous fiscal year.