Nepal willing to export tomatoes to India, seeks easier access to markets

Nepal has expressed its readiness to export tomatoes to India in large quantities to help mitigate the surging prices, provided that it gains easier access to the Indian market and related facilities. 

This assurance comes in response to Finance Minister Nirmala Sitharaman's recent statement that India has commenced tomato imports from Nepal due to record-high prices due to heavy rainfall.

Nepal is desirous to export vegetables, such as tomatoes, on a long-term basis to India, but for that India has to provide easy access to its market and other necessary facilities, Nepal’s Agriculture Ministry spokesperson Shabnam Shivakoti told PTI 

Although Nepal has initiated tomato exports to India through official channels, the volume remains limited. 

Echoing her voice, Binaya Shrestha, Deputy Director at Kalimati Fruits and Vegetable Market Development Board, Nepal, said, If we are provided with easy access to the Indian market, Nepal can export huge quantities of tomatoes to India.

Tomato surplus in Nepal

Tomatoes are in surplus within Nepal, particularly in the Kathmandu Valley, which encompasses districts like Kathmandu, Lalitpur, and Bhaktapur. These regions have the potential to meet local demand while contributing to exports if favourable conditions are met.

India is importing tomatoes for the first time | Image credit: Unsplash

Tomato prices in Nepal have experienced significant fluctuations recently. A few months ago, 60,000 to 70,000 kg of tomatoes were discarded on roads due to a lack of demand and low prices. However, the situation reversed when traders began exporting tomatoes to India through unofficial channels, leading to shortages and driving prices upward. 

Consequently, the retail price soared from Rs 40-50 per kg to Rs 200-250 per kg, incentivising farmers to explore cross-border sales opportunities.

"We can fetch up to NRs 150 per kg after our products are exported to India through unofficial channels. Last month, 70,000 kg to 90,000 kg tomatoes were exported to India through unofficial channels on a daily basis," said Badri Shrestha, who grows 2,000 to 3,000 kg of tomatoes every alternate day from his farm located in Lalitpur district near Kathmandu during the vegetable season.

Nepal requests facilities to support tomato exports

Nepal's Agriculture Minister Beduram Bhushal held discussions during a recent visit to India, aiming to facilitate Nepalese agricultural product exports, including tomatoes. The Nepal government also called for Indian authorities to arrange quarantine and related facilities to support the export of various produce, such as tomatoes, peas, and green peppers. 

10 tonnes of Nepalese tomatoes are on their way to Uttar Pradesh | Image credit: Unsplash

The Plant Quarantine and Pesticide Control Office (PQPCO) in Nepal issues certificates to exporters before the produce is imported into India.

Presently, Nepal has already begun exporting tomatoes through two border checkpoints. The Indian government has added certain Nepalese vegetable items, including tomatoes, to its quarantine list to facilitate imports. 

Additionally, around 10 tonnes of Nepalese tomatoes are en route to Uttar Pradesh in India, where they will be sold at a subsidised rate of Rs 70 per kg through the National Cooperative Consumers' Federation of India Limited (NCCF).

To address domestic availability and price concerns, the NCCF has been selling discounted tomatoes in several regions, including Delhi-NCR, Rajasthan, and Uttar Pradesh. 

This development underscores the complex dynamics of cross-border trade in perishable goods and the importance of collaboration between neighbouring nations to stabilise markets and ensure supply.

(With PTI inputs)