Banana price soars due to shortage

By TRN Online, Kathmandu, April 21: Banana price has skyrocketed due to extreme shortage in the market as the traders boycott bananas that enter Nepal illegally through Nepal-India border.

Banana shortage is intensified due to the fact that domestic production of the fruit is far below the demand.

Amar Baniya, chairperson of Nepal Fruits Wholesalers Association, attributed the price hike of banana to much less supply than the demand of banana in the market. He clarified that price hike is not artificial.

Supply chain got affected as the Association took step to prevent sale and distribution of banana brought in the country through borders illegally.

He said the consumers were compelled to purchase banana at the rate of Rs. 300 to 350 per dozen due to the shortage.

He pointed at the need to strictly stop entry of the Indian banana in the market in the name of Nepali banana. This is happening due to the weak security and monitoring at the border.

Baniya added that the banana price got increased as the star hotels bought quality bananas in high price.

Farmers, on the other hand, blamed middlemen for the hike in banana price. They said they were selling banana in the market at Rs. 50-80 a dozen.

However, Baniya went on to say that retailers were facing loss as consumers were not purchasing Nepali bananas for their small size and in their belief that the bananas were of low standard.

Baniya said that domestic production of banana meets only 30 per cent of internal demand although the government has claimed that the country is 80 percent self-reliant on banana.

He emphasized that the government should control import and take concrete policy to increase domestic production and coordinate between the business and farmers.