KATHMANDU, June 10: Betel nut exports have come to a halt in Nepal due to conflicting directives issued by the House of Representatives and the National Assembly.
During Sunday’s meeting of the National Assembly’s Development, Economic Affairs, and Good Governance Committee, Chairperson Kamala Pant initiated a discussion to revise the committee’s earlier directive requiring DNA testing for betel nut exports. However, objections from her own party’s lawmakers prevented the committee from reaching any decision.
Nepali Congress lawmaker Deep Jung Basnet rejected the proposal, which aimed to amend a directive issued under the leadership of former committee member Ramesh Jung Rayamajhi. The earlier directive had made DNA testing mandatory before allowing betel nut exports which contradicts with another directed issued by the Industry, Commerce, and Consumer Welfare Committee of the House of Representatives.
Due to the conflicting instructions from the committees of the lower and upper houses of parliament, government authorities remain unclear about which directive to follow.
Agriculture Minister Ramnath Adhikari, who was present at the meeting, emphasized the need for a joint discussion involving the ministries of agriculture, industry, and finance to resolve the issue.
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Chairperson Pant said betel nut does not even fall within the committee’s jurisdiction and that it has been difficult to revise a decision made before her tenure. She admitted the committee’s inability to reach a consensus has created further complications.
The House of Representatives’ Industry, Commerce, and Consumer Welfare Committee had sent a directive on August 5, 2024, to the Ministry of Industry, Commerce, and Supplies, instructing it to coordinate with betel nut cooperatives to facilitate exports. The committee had also called for the establishment of an international-standard laboratory to streamline verification of origin and quality certification of Nepali agricultural products.
In contrast, the National Assembly’s then-Sustainable Development and Good Governance Committee (now Development, Economic Affairs, and Good Governance Committee), in a meeting on July 29, 2022, had instructed that only betel nut verified through DNA testing as being grown in Nepal would be eligible for export.
Despite the lack of DNA testing technology for betel nut in Nepal, the directive was issued, prompting domestic producers to submit a memorandum demanding a revision. Speaker Devraj Ghimire has repeatedly urged parliamentary committees to consider the concerns of Nepali producers.
The Ministry of Industry has written to the Parliamentary Secretariat seeking clarity, stating: “Regarding betel nut export, if it is acceptable to issue a certificate of origin only after conducting DNA testing or based on Clause 3 of the Procedure Related to Issuance of Certificate of Origin–2011, then we request a clear directive through coordination between both committees.”
The conflicting directives have not only disrupted the export of Nepali betel nut but also failed to create a market for the domestic product within the country. Meanwhile, the government has granted import licenses to 12 industries.
Officials from the Department of Commerce, Supply, and Consumer Protection said that only industries using betel nut as a raw material receive import permits, based on recommendations from the Department of Industry. Industries that trade solely in betel nut are not permitted to import.
According to government data, Nepal produces around 14,500 tons of betel nut annually—enough to meet domestic demand. However, producers are protesting what they call the Ministry of Industry, Commerce, and Supplies’ hasty approval of imports under the influence of certain business interests.
The Ministry of Agriculture reports that commercial betel nut farming is concentrated in the southern parts of Jhapa, Morang, Sunsari, Ilam, and Udayapur districts, with cultivation also taking place in other areas.
