The government has suspended honey import permits for the past eight months, yet Nepali farmers continue to struggle in selling their honey stocks.
Despite insufficient domestic production to meet the market demand, locally produced honey remains unsold due to its higher cost compared to imported honey.
Inability to compete with cheaper imported honey resulted in approximately 3,200 metric tons of domestically produced honey going to waste last year. To address this issue, the Ministry of Agriculture and Livestock Development (MOALD) directed the Department of Food Technology and Quality Control in April to stop issuing import permits until domestic stocks were cleared.
Nepal produces about 5,000 metric tons of honey annually, while the domestic market demands around 8,000 metric tons, according to the Federation of Nepal Beekeepers (FNB). However, local honey continues to struggle in the market.
FNB President Subash Chandra Ghimire stated that they had 3,200 metric tons of honey in stock before the government stopped issuing permits. “Even after eight months, 700 metric tons remain unsold."
The higher production cost of local honey, at Rs 400 per kilogram, compared to imported honey from India at Rs 200 per kilogram, makes it difficult for Nepali honey to compete in the market. "Traders prefer to import honey at Rs 200 and sell it for Rs 1,000 instead of purchasing domestic honey," Ghimire added. While the suspension of import permits has improved the situation slightly, Ghimire believes more needs to be done.
Farmers have urged the government to raise taxes on honey imports and assist in promoting local honey, arguing that their investments are at risk due to competition from cheaper foreign honey. However, under Nepal's trade agreement with India, the country cannot impose customs duties on Indian honey, making it challenging for local honey producers to compete.
Sabnam Siwakoti, joint secretary at MOALD, confirmed that the ministry instructed the Department of Food Technology and Quality Control not to issue new import permits until farmers' stocks are sold. "Once the issue is resolved, the ministry will consult with farmers' representatives before resuming import permits," Siwakoti said.
Although no new import permits have been issued, honey continues to enter Nepal through the customs. Data from the Department of Customs reveal that 102 metric tons of honey worth Rs 284 million were imported in the first three months of the current fiscal year.
Nepal imported honey primarily from India and New Zealand. Siwakoti explained that the imported honey may be from permits issued before the suspension.
“Import permits are valid for six months, so these imports likely occurred under previously issued permits," he said.
Currently, 13,800 farmers across 42 districts in Nepal are engaged in beekeeping under the FNB. The federation says the farmers are facing challenges in marketing their products despite the government's efforts to support the sector.
