Chinese garlic is being smuggled into India via Nepal in large quantities due to its high profitability. Nepali traders in the border areas report that they can earn up to Rs 100 per kilogram by selling it in Indian markets.
Last Thursday, local trader Jagdish Sah said he sold three varieties of garlic at different prices in the vegetable market at Gudri Bazaar, Jogbani, an Indian border town. He said that fresh local garlic was being sold for Rs 100 per kilogram, small but dried garlic for Rs 200, and large garlic with thick stalks for Rs 300 per kilogram. Although he did not know the origin of the garlic, he stated that he purchased it from dealers and sold it at retail.
Chinese garlic, which comes in large containers, is sold at Rs 200 per kilogram in Nepal. The price of the same garlic is Rs 100 per kilogram more in the Indian market, due to which smuggling is rife. Nepali traders have been importing garlic from China and smuggling it into India for profit.
According to Indian media reports, India’s garlic production declined because farmers in major garlic-producing states—Gujarat, Rajasthan, Madhya Pradesh, and Punjab—shifted to other crops after receiving unfair prices for garlic in previous seasons. Additionally, last year’s drought disrupted the planting and harvesting cycles, further reducing production. As a result, garlic prices soared to INR 500 per kilogram in December 2024, prompting India to import garlic from Afghanistan.
Taking advantage of these high prices, Nepali traders have ramped up Chinese garlic imports and smuggled them into India. Data from Nepal’s Department of Customs shows that Nepal imported garlic worth Rs 6.18 billion in the first six months of the current fiscal year (FY 2024/25), a significant jump from Rs 778.7 million in the same period of the previous fiscal year. In the entire FY 2023/24, Nepal imported Rs 2.22 billion worth of garlic from China, while in the three fiscal years before that, imports from China amounted to just over Rs 1 billion.
Sanjay Mandal, president of the Biratnagar Retail Trade Association, stated that traders frequently exploit the open border by smuggling goods in short supply in India. He cited past cases of smuggled betel nut, cardamom, green peas, and Chinese apples, which authorities later banned.
Indian journalist Pankaj Ranjit from Forbesganj, Araria, confirmed that Chinese garlic is now being smuggled into India just as betel nut was previously. He noted that Indian authorities had seized smuggled Chinese garlic at various locations, including Araria, Supaul, and Purnia. He attributed the smuggling to the higher demand for Chinese garlic, which has larger pods and stalks compared to local varieties.
In response to the illegal export, Nepal’s quarantine offices have tightened restrictions on Chinese garlic imports. Nepali officials claim that India has not formally raised concerns, but Nepal has still enforced stricter measures. Since late January 2025, the Department of Plant Quarantine and Pesticide Management has halted garlic imports at key border points, including Biratnagar, Rasuwa, and Tatopani, citing excessive imports. Currently, a 29-metric-ton container of garlic imported by Goyal Enterprises remains stuck at Biratnagar Customs as authorities refuse to issue entry permits.
Although Nepal’s annual garlic demand stands at 9,000 metric tons after accounting for local production, customs data reveals that the country imported 46,900 metric tons in just the first six months of FY 2024/25.
Nanda Kishore Singh, head of the Plant Quarantine and Pesticide Management Office in Biratnagar, said they halted imports following a verbal order from senior officials, who deemed the quantity excessive. Meanwhile, Bhojraj Sapkota, head of the Plant Quarantine and Pesticide Management Center, clarified that only garlic shipments that had not completed the required quarantine process were blocked. He explained that traders must apply for quarantine clearance before their goods arrive at customs, and those who fail to do so face import restrictions.
Despite these developments, recent reports from Indian media suggest that garlic prices in India have declined, potentially discouraging further smuggling. According to The Hindu, wholesale garlic prices in India have fallen to INR 120–150 per kilogram. Trader Sah from Jogbani also noted that prices are likely to drop further now that fresh Indian garlic has arrived in the market.