A preliminary study by the Department of Customs has revealed smuggling of garlic to India as the primary reason for the unnatural surge in garlic imports from China. According to the department’s data, an unusual volume of garlic has been imported from China since the start of the current fiscal year (FY 2023/24).
The data shows that Nepal imported 40,000 metric tons of garlic worth Rs 5.36 billion in the first five months of FY 2023/24. This represents a 790% increase in value compared to the same period in FY 2022/23, during which only 4,600 metric tons of garlic worth Rs 602.1 million were imported from China.
In response to this trend, the Ministry of Finance instructed the Department of Customs to investigate the matter. "Our preliminary study found that some businessmen, taking advantage of the open border between Nepal and India, are importing garlic from China and smuggling it to India," Mukti Prasad Shrestha, the department’s information officer, told New Business Age .
According to Shrestha, discussions with importing businessmen confirmed that garlic is being imported from China and illegally exported to India. “The department’s study indicates that many new entrepreneurs are involved in this activity,” Shrestha added.
Chinese garlic, which is larger in size and easier to use compared to garlic grown in Nepal and India, has reportedly gained popularity in the Indian market, increasing its demand.
Mahesh Bhattarai, spokesperson for the Ministry of Finance, stated that the department has been instructed to conduct a detailed investigation to identify the reasons behind the abnormal import volumes and track where the garlic is being exported. Bhattarai added that the ministry has also directed the department to study past garlic consumption trends in Nepal and prepare a report on import patterns.
An analysis of customs data over the past four years shows a slight increase in garlic imports from China starting in FY 2023/24 compared to the previous three years. However, the current fiscal year’s import appears highly irregular.
According to the Ministry of Agriculture and Livestock Development, garlic is cultivated on approximately 9,500 hectares of land in Nepal. In FY 2022/23, Nepal produced 73,576 metric tons of garlic on 9,570 hectares of land.
Businessmen have attributed the recent surge in imports to seasonal factors. "It is currently harvest time for garlic in China, while in Nepal, new garlic is only produced around March-April. This has led to increased imports," said Geeta Prasad Acharya, chairman of the Kalimati Fruit and Vegetable Market Committee.
However, Acharya acknowledged that the volume of current imports appears unnatural. Some businessmen believe the surge is due to Chinese garlic being routed to India via Nepal, a practice that has inflated the import figures.
