KATHMANDU: Garlic imports have increased nearly 10 times over the first five months of fiscal year 2024/25.
According to the Department of Customs, Nepal imported 4,667.95 tons of garlic worth Rs 603.42 million over the first five months of 2023/24. This has gone up by nearly 10 times to 40,657.82 tons worth Rs 5.36 billion over the first five months of the current fiscal. Almost all the imports came from China.
Total exports in the entire 2023/24 was only 17,041.23 tons worth only Rs 2.22 billion.
Garlic now ranks 19th on the list of Nepal’s most imported goods. According to Mukti Prasad Shrestha, the information officer for the Department of Customs, the unusual spike in garlic imports since September has made the department feel suspicious. “Customs duty of Rs 34 per kilogram has generated Rs 1.38 billion in revenue from garlic imports in the five months of 2024/25. This is more than double the total customs revenue collected on garlic imports during the previous fiscal year,” Shrestha added.
Officials suspect the imported garlic is being smuggled into India where the demand for the spice has gone up due to low production. Last week, Indian police seized 640 tons of Chinese garlic allegedly smuggled through Nepal in Motihari, Bihar.
Traders bring garlic from China at Rs 180 per kg including transportation charges and customs duty. Garlic costs as much as Rs 300 per kg in the Nepali wholesale markets.
India levies a 30% customs duty on garlic imports. However, Nepali traders have not sent garlic to India through formal channels. Since the Nepali market cannot consume all the imported garlic, it is certain that the spice is being smuggled into India.