Betel Nut trade in limbo

The betel nut trade, one of Nepal's major cash crops, has come to a standstill as a parliamentary committee has directed the government to allow exports only after conducting DNA tests.

Betel nuts have been cultivated for many years in districts like Jhapa, and the product is primarily exported to India. According to the Betel Nut Farming Development Association, Nepal's eastern region produces 15,000 metric tonnes of betel nut annually, valued at Rs 8 to 12 billion at current market prices.

The suspension of exports due to policy confusion has left the future uncertain for nearly 100,000 farmers engaged in betel nut cultivation from Jhapa to Udayapur, said the Association's central chair, Nilakantha Tiwari.

"The parliamentary committee has directed the Ministries of Finance and Commerce to allow exports only after DNA testing," Tiwari explained. The Sustainable Development and Good Governance Development Committee of the National Assembly had issued formal instructions to this effect.

Despite the directive, the necessary laboratory infrastructure for DNA testing has yet to be established. India, which has imposed a quota on Nepal's betel nut exports, requires proof that the exported betel nuts are produced within Nepal. DNA testing was introduced as a measure to ensure compliance with this requirement.

JHAPA, DECEMBER 4 : Farmers have voiced concerns over the DNA testing mandate, describing it as a significant bottleneck. Betel nut exports have been halted since last year, creating financial uncertainty. Jeevan Pandey, a farmer from Mechinagar Municipality, expressed worries about selling his harvest this year. He has dedicated one and a half bighas of former paddy fields to betel nut cultivation.

Similarly, Pawan Baraili, a ward member from Mechinagar-4 Bahundangi, criticized the government for failing to provide subsidies or support to betel nut farmers. He pointed out that many farmers turned to cash crops like betel nuts and tea as their primary livelihood after wild elephants began destroying traditional crops such as paddy and maize.

Bahundangi, Sanischare, and Budhare in Jhapa are renowned for pioneering betel nut production in Nepal.

Association President Tiwari emphasized that the DNA testing requirement should not become an obstacle. "Testing the DNA of betel nuts exported at various times and in different quantities is impractical," he said.

The ongoing export suspension underscores the urgent need for clear policies and supportive infrastructure to sustain the livelihoods of Nepal’s betel nut farmers.