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The supply had been halted briefly due to India’s imposition of a 40 per cent export tax on onions
Nepalese traders have resumed importing onions from India to meet the high demand for the vegetable during the upcoming festival season. The supply had been halted briefly due to India’s imposition of a 40 per cent export tax on onions, which is in effect until December 31.
India is the world’s largest exporter of onions, and the tax was put in place to limit overseas sales and prevent a potential price increase. The new tariff had a significant impact on Nepal, as traders in the Kalimati Fruit and Vegetable Market, the country’s largest wholesale market for agricultural products, reported a sudden shortage of onions. Nepal relies on India for 99 per cent of its onion supply.