Nepal resumes onion import from India

Kathmandu: Traders in Nepal have resumed importing onions from India to meet the soaring domestic demand ahead of a festival season, days after the supply was halted following India’s decision to slap a 40 per cent export tax on the vegetable.

Last week, India, the world’s biggest exporter of onions, imposed a 40 per cent tariff on the export of the vegetable till December 31 to restrict overseas sales. The move reportedly came amid an anticipation of a price rise ahead of the festival season when demand for most commodities goes up.

The new tariff had severely affected Nepal as several traders in the Kalimati Fruit and Vegetable Market - the Himalayan nation’s largest wholesale market for agricultural products - reported a sudden scarcity of onions. Nepal imports 99 per cent of its onion requirements from India.