Border crackdown disrupts apple re-export trade

By Our Correspondent,Biratnagar, Apr. 18: Traders in eastern Nepal who had been importing apples from China and illegally re-exporting them to India have found themselves in serious difficulty after local authorities tightened controls at the border.

Previously, traders had been transporting Chinese apples into India through the open border points of Jhapa, Morang, and Sunsari. However, recent stricter enforcement by local authorities has disrupted these activities.

Although the apples were legally imported, their export had been carried out illegally. With increased border control, the impact is now visible in cold storage facilities. There are only three cold stores in Biratnagar, and imports have exceeded their storage capacity.

Traders had been importing more apples than the Nepali market could consume, relying on a syndicate system to smuggle the surplus into India. However, with tighter border regulations, traders are now struggling to manage the excess stock.

According to Suprim Regmi, operator of Shriram Cold Store in Biratnagar, there is currently a high influx of apples imported from China, as it is the peak season. 

The three cold storage facilities in Biratnagar are Shriram Cold Storage, Eastern Cold Store, and Global Cold Store. Among them, Global Cold Store is operated by Bijay Jaiswal Chaudhary, who is also involved in fruit trading through his company, Bijay Fruit.

Issues related to apple smuggling from the three districts of Koshi Province have been reported in the past as well. 

However, in recent times, illegal activities at the border have been significantly curtailed. Additionally, regulations requiring customs duties on goods worth more than Rs. 100 brought across the border have been strictly enforced.

Ahmad Saheb Guddu Miya, Secretary of the Biratnagar Vegetable and Fruit Wholesale Market Management Committee, stated that the market is currently flooded with apples imported from China, which is also the peak import period. According to him, syndicate groups have been involved in transporting these apples across the border into India, with traders from both Nepal and India participating.

Two years ago, 571 cartons of Chinese apples were seized by the Armed Police Force while being smuggled into India through the eastern Lodhawari checkpoint in Jhapa’s Kachankawal Rural Municipality-4. 

Earlier, on June 12, 2021, 1,350 cartons of apples being transported in three trucks were intercepted at the Lahi checkpoint in Haripur, Sunsari, while being taken into India.

According to a trader in Biratnagar, the situation has now changed. Over the past 15 days, traders have been unwilling to transport apples across the border. The trader stated that Bijay Fruit and Divyani Enterprises are among the largest importers of apples in Biratnagar.

“The cold store facilities don’t even have the capacity to store ten containers, but around fifty containers have arrived,” the trader said. 

“Those who used to take the risk of transporting apples into India are no longer willing to do so.”

Mukesh Chaudhary, operator of Divyani Enterprises, claimed that the apple trade is being conducted legally. 

He stated that his responsibility ends after supplying imported apples to the market and that he is unaware of where the apples eventually go.

Chief District Officer of Morang, Yubaraj Kattel, informed that local authorities have been regularly monitoring the border, often on alternate days. 

He added that the administration is working to involve locals in preventing illegal activities.

Bimal Dev Sah, a customs officer at the Biratnagar Customs Office, stated that there is no official record of apples imported through customs being exported.  However, apples consistently rank among the top 20 imported goods in terms of value.