While the production of betel nuts in the country is sufficient, the government has allowed 12 industries to import about 11,500 tons to encourage illegal exports. The government, which canceled the import quota since last February, allowed the import of betel nuts worth 1.66 billion rupees in 6 months.

According to government data, 14,500 tons of betel nuts are produced annually in the country. Stakeholders say that it can meet the demands of industrialists. But in the interests of industrialists, the Ministry of Industry, Commerce and Supply has canceled the import quota and allowed the import of betel nuts. 

Neelkanth Tiwari, president of the Betel Producers Kisan Association of Nepal, said that farmers will be displaced due to the decision of the ministry. The current production meets the domestic demand. If the government encourages it, enough can be exported," he said, "but the government has opened up imports for the benefit of industrialists by killing farmers. This has caused problems to the farmers.' 

Earlier, the Sustainable Development and Good Governance Committee under the National Assembly said that 7,000 tons of betel nuts in the country would be enough. The sub-committee formed to study the policy arrangements in the trade from third countries also said that domestic products can be exported to meet the demand. But the stakeholders claim that the license was given to encourage illegal importation without adequate study. 

The Department of Commerce, Supply and Consumer Protection has given import permission on the recommendation of the Industry Department. Since October, 12 industrialists have received permission to import 11,457 tons of betel nuts worth 1.66 billion. The highest number of Mankamana industries has got permission to import 5 thousand 562 tons of betel nuts worth 809.2 million rupees. Manakamana has received permission to import betel nuts from Indonesia through Biratnagar customs checkpoint. 

In the second, Sriram Tobacco Industry has got permission to import betel nuts worth 349.8 million rupees. It is mentioned that Sriram got permission to import 2 thousand 647.5 tons of betel nuts. According to the department, Shriram will import from Indonesia through Bhairahawa channel. 

Soya Shree Processing Industry has received permission to import 1,260 tons of betel nuts worth 184.8 million rupees and Srideuti Gutkha Industry has received permission to import 589 tons of betel nuts worth 89.7 million rupees. 581 tonnes worth Rs 85.7 million to Madhu Products and 288 tonnes worth Rs 49 million to Wizard Fragrances industry. 

IPA Gutkha Industry got permission to import 252 tons worth 4337 million rupees, Balaji Udyog Pvt Ltd 96 tons worth 16 million rupees and Ganapati Agro Products Pvt Ltd got permission to import 72 tons worth 147 million rupees. According to the department, Mahashakti Gutkha Industry has been given permission to import 50 tonnes worth Rs 82 lakh, Arihant Betel Processing Industry 36 tonnes worth Rs 60 lakh and Narayan Raj Products Pvt Ltd 23.7 tonnes worth Rs 27 lakh. 

The All Nepal Kisan Federation says that farmers will be displaced if licenses are granted in this way. 

Farmers have not been able to sell betel nuts since 2079. The betel nuts of the farmers are not sold and are left behind. But the government has opened the import as much as the industrialists demanded. This decision is not appropriate for Nepali farmers," said Prem Dangal, president of the federation, "according to a study, around 35,000 tons of betel nuts will be produced in the next 4 years. Despite the possibility of expansion of betel nut cultivation, there has not been an environment to sell indigenous products.' 

Officials of the department say that the purpose of most of the industries that have been licensed is to send them to India. Most of the industries are in border areas. "They keep some amount of imported betel nuts in the country and send the rest to India," said an official of the Commerce Department. It spoils the export market. He said that commerce has deployed monitoring in the Terai region to get information about the capacity and balance of gutkha industry.