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As Indian bananas enter Nepal unchecked, bananas worth billions of rupees produced by Nepali farmers are rotting in the fields. Farmers say the situation has worsened after the government reduced import taxes on Indian bananas and failed to enforce plant quarantine regulations at border customs points.

Nepali bananas typically reach markets between July and November. But this season, farmers complain they cannot sell their produce. “Instead of supporting local farmers, the government has slashed taxes on Indian bananas and ignored quarantine checks, causing our harvest to rot in the fields,” said Dipendra Tharu, president of the Banana Producers and Traders Association in Kailali. The association has demanded a ban on Indian banana imports until November, stricter quarantine procedures, and priority for Nepali bananas.

Tharu said a memorandum has already been submitted to Sudurpaschim Province Chief Minister Kamal Bahadur Shah, urging a halt to banana imports through the Kailali and Kanchanpur customs offices.

Farmers warn of protests if the government does not intervene. “If Indian bananas are not stopped immediately, we will be forced to launch a phased protest,” said association chairperson Chaudhary. Meanwhile, farmer Kamal Rawat from Tikapur said bananas grown on seven bighas of land are rotting because wholesalers are unwilling to buy them at fair prices. “We’re being forced to sell bananas for Rs 10–15 a dozen, which doesn’t even cover production costs. We’re on the verge of collapse,” he said.

Tikapur bananas are usually supplied to markets in Dhangadhi, Mahendranagar, Nepalgunj, Surkhet, Dang, Butwal, and beyond. But this year, farmers like Rawat and Tekendra Dhami say buyers have vanished. “Last year, bananas sold for Rs 40–50 a dozen in the fields. This year they’re left to rot,” Dhami said. Farmers warn that if their demands are ignored by Sept 22, they will take to the streets.

Banana farmers across the country are preparing for a movement, saying their hard work and investment are being undermined by cheap Indian imports. The Nepal Banana Producers Federation Committee in Kathmandu has also issued a statement, demanding the government secure a market for Nepali bananas. Farmers from Kailali, Kanchanpur, Bardiya, Nawalparasi, and Chitwan have warned that unchecked imports are worsening the trade deficit and pushing local producers out of business.

Banana cultivation currently takes place in 69 districts of Nepal. According to the Ministry of Agriculture and Livestock, 383,285 tons of bananas are produced annually on 23,404 hectares of land, worth around Rs 15bn. Of this, bananas worth over Rs 2bn are produced in Kailali alone, said Santosh Upadhyay, associate professor of agricultural economics at Sudurpaschim University.

Globally, India is the largest banana producer, cultivating 866,000 hectares and producing more than 30m metric tons annually—26 percent of the world’s total. China, Brazil, and Indonesia follow, while Nepal ranks 11th, with 23,000 hectares under banana cultivation.

The long-awaited second phase of the Rani Jamara-Kulariya Irrigation Project—a national pride initiative—has been completed, delivering year-round irrigation to over 14,300 hectares of farmland and adding 4.71 megawatts of electricity to the national grid. Initiated in 2010 with a joint investment of Rs 27bn from the Government of Nepal and the World Bank, the project is hailed as a transformative leap for the agricultural and energy sectors of eastern Kailali.

The second phase, inaugurated by Prime Minister KP Sharma Oli on Tuesday, includes the completion of the Lamki Branch Canal, which now irrigates Lamki Chuha Municipality-4, 6 and 8. Water from the Karnali River is distributed through a canal stretching 25 kilometers west to the Patharaiya River, significantly expanding the irrigation network that supports farming in Tikapur and Janaki Rural Municipality.

Once fully completed, the project aims to provide perennial irrigation to 38,300 hectares of land, with 75 percent of the work already finished. According to Engineer Navin Paudyal, the remaining 25 percent will be completed within the next six years, including plans to extend irrigation from the Patharaiya to the Kandra River—covering an additional 18,000 hectares.

In addition to irrigation, the project has successfully integrated hydropower generation, producing 4.71 megawatts of electricity from its power plant in Katase, Janaki Rural Municipality-9. The electricity, generated using canal water with an eight-meter head, has been connected to the national transmission line since 31 Jan 2024.

“This is a proud moment for us,” said Engineer Bir Singh Dhami, who oversees the power segment. “We are generating 42 gigawatt-hours annually from a consistent canal water flow.” However, despite being operational for over a year, the power plant’s operation and management procedure is still awaiting final approval. While the plant is already transmitting electricity, a Power Purchase Agreement (PPA) with the Nepal Electricity Authority remains pending due to procedural delays.

Minister for Energy, Water Resources, and Irrigation Deepak Khadka confirmed that the draft PPA has been finalized and the ministry is preparing to move forward with the agreement.

Beyond irrigation and energy, the project is driving agricultural transformation in the region. Through its Agricultural Program Implementation Unit, it supports seed production, provides modern farming tools, and delivers technical training to farmers.

Eastern Kailali is now emerging as a seed production hub, with numerous cooperatives and private firms producing high-quality seeds of rice, wheat, mustard, and maize. Organizations such as the Seed Growing Farmers Cooperative in Munuwa and Top Agriculture Science and Technology Research Pvt Ltd are producing and distributing hundreds of metric tons of certified seeds annually across Nepal.

“Farming is now possible year-round,” said Kumar Raj Shahi, Chair of the Rani Jamara and Kulariya Water Users’ Committee. “Thanks to irrigation and agricultural support, crop productivity has already exceeded the national average in rice, wheat, and maize.”

Prime Minister Oli announced that the third phase of the project has been approved for World Bank financing, aiming to bring irrigation to the remaining 18,000 hectares and fully realize the project's vision.

“This is not just progress in irrigation and energy,” said Oli. “It is a roadmap for agricultural prosperity, energy independence, and food security in Nepal.”

Chief Minister Kamal Bahadur Shah and other provincial leaders have called for accelerated progress on complementary infrastructure, including the Lamki-Bareilly transmission line, Seti Highway, and the Paschim Seti and Betan Karnali hydropower projects.