The Department of Commerce, Supplies, and Consumer Protection has invited applications from interested companies to import 90,000 metric tons of wheat from India. In a notice published on Monday, the department, which falls under the jurisdiction of the Ministry of Industry, Commerce and Supplies, called on firms with a paid-up capital of at least Rs 10 million to apply under the quota system.

According to the notice, interested companies must submit their applications within seven days, specifying the quantity they intend to import. Each company must apply for a minimum of 100 metric tons and a maximum of 10,000 metric tons. India has designated its National Cooperative Export Limited (NCEL) to export wheat to Nepali firms. Nepali importers must pay the full amount in advance to NCEL and provide financial assurance, said department spokesperson Dik Bahadur Karki.

India, which had imposed a complete ban on wheat exports since May 2022, approved the export of 200,000 metric tons of wheat to Nepal on January 4, 2025.

Following India’s export ban, the prices of flour, noodles, and biscuits surged in Nepal, prompting manufacturers to urge the government to secure a steady wheat supply. In response, the government requested 200,000 metric tons of wheat from India to meet industrial demand. While Nepal also imports wheat from Mexico, China, Japan, Thailand, Britain, and Bangladesh, India remains a key supplier.

Of the 200,000 metric tons approved by India, 90,000 metric tons are now being imported for food consumption. The Department of Industries will issue a separate notice for wheat imports meant for industrial use, Karki added.

However, importers may not find the quota system attractive since they are required to sell wheat at the same price as the Salt Trading Corporation. A similar system was introduced for sugar imports, but entrepreneurs did not proceed with imports despite submitting applications.

According to the Ministry of Agriculture and Livestock Development, Nepal produces 2.1 million metric tons of wheat annually on approximately 700,000 hectares of land. However, this production does not meet the demand for industrial use.

Last year, although the government approved the import of over 300,000 metric tons of wheat, industrialists imported only about 150,000 tons. Data from the Trade and Export Promotion Center shows that Nepal imported wheat worth Rs 2.73 billion in the last fiscal year 2023/24.