Peppercorns, peas, dates, and betel nuts have all been barred from entering the country by the government.
Nepal Rastra Bank (NRB) issued a public notice on Sunday informing the public that the authority will only authorise the shipment of these items to those traders who have obtained permits and opened letter of credit accounts as of the middle of July this year. For the time being, the central bank has requested that banks and financial institutions refrain from considering new documentation for transactions and payments involving the importation of certain items. NRBR17;s public notice states that “since the government has not extended the quota provisions or provided licences to the importers, it has been communicated to those who are affected by this decision.”
In March, the government announced that it will loosen the restrictions on the import of various agricultural products on a conditional basis. A total of 15,000 tonnes of betel nut and pepper, as well as 5,000 tonnes of dates, were authorised to be imported by traders each year, provided that the items were to be employed for industrial purposes.
In order to avoid a possible decline in foreign currency reserves following the adoption of the lockdown on March 24, 2019/20, the government has fully prohibited the import of high-priced delicacies as well as high-end automobiles. In response to the pressure from traders, the government became more accommodating in this area later on. These commodities are imported by traders from third-world countries, and it has been discovered that considerable volumes of these imports are smuggled into India.
In this case as well, policy action was initiated when the countryR17;s foreign currency reserves began to be put under strain. NRB data shows that Nepal had a negative balance of payments in the first month of the current fiscal year of Rs 38.75 billion, according to the NRB.