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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 price of gold has increased by Rs 800 per tola in the domestic market on Friday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 216, 000 per tola today.

Similarly, the price of silver has increased by Rs 60 and is being traded at Rs 2, 580 per tola today.

Bank and financial institutions reported net profit of Rs 9.37bn in the first month of the current fiscal year. This is 7.77 percent lower than the same period of the previous fiscal year when BFIs posted total net profit of Rs 10.16bn. According to the Nepal Rastra Bank (NRB), commercial banks alone posted net profit of Rs 8.38bn in Shrawan (mid-July to mid-August), or 89.33 percent of total net profit of BFIs, in the review period. Development banks and financial companies reported net profits of Rs 820m and Rs 180m, respectively, in the first month of 2025/26.

BFIs had reported a total net profit of Rs 78.8bn in 2024/25. Meanwhile, total deposits in BFIs fell by Rs 63bn and loans by Rs 18bn in mid-August compared to mid-July. In the same period of the previous fiscal year, deposits had declined by Rs 57bn while credit had expanded by Rs 3bn. 

The central bank further added that non-banking assets of banks went up to Rs 50.56bn in mid-July. Among commercial banks, Global IME Bank reported the highest net profit of Rs 784.5m in the first month of 2025/26, followed by Nabil Bank at Rs 716.4m and Nepal Investment Mega Bank (NIMB) at Rs 634.2m. State-owned banks, Rastriya Banijya Bank and Nepal Bank Ltd, took the next two spots with net profits of Rs 558.3m and Rs 552.7m, respectively.

According to the central bank, Prime Commercial Bank was next with a net profit of Rs 505m, followed by Kumari Bank (Rs 492.4m) and Everest Bank (Rs 483.9m). Similarly, NMB Bank posted a net profit of Rs 466.8m, Himalayan Bank Rs 408.9m, Siddhartha Bank Rs 401.4m and Laxmi Sunrise Bank Rs 394.5m.

Likewise, Sanima Bank reported a net profit of Rs 390.3m, followed by NIC Asia (Rs 319.4m), Prabhu Bank (Rs 302.3m), Citizens Bank (Rs 272.5m) and Standard Chartered Bank Rs 271.6m. Machhapuchchhre Bank posted a net profit of Rs 265.2m in the review month, while Nepal SBI Bank and Agricultural Development Bank Ltd earned net profits of Rs 158.9m and Rs 3.8m, respectively.

Nepal Rastra Bank Governor Dr Biswonath Poudel has stressed the urgency of political stability, investment-friendly environment and morale boost of the private sector to revive the national economy.

He clarified that reform in the economic system is needed to protect entrepreneurs. 

While welcoming the new working committee of the Society of Economic Journalists of Nepal (SEJON) on Thursday, NRB Governor Poudel mentioned that the problem had surfaced due to unclear law. In his view, legal clarity helps resolve the problems while negotiating the present difficult time. 

He reminded the media persons over the risk of dissemination of wrong information and messages. All should be aware of it, the Governor added.

"There won't be a resource crunch for the reconstruction of structures damaged during the Gen-Z protests. Although a huge financial resource is needed for the reconstruction, improvement in governance and administrative efficiency is prerequisite," Dr Pauel underlined. 

Moreover, there is no option before the government but to boost the morale of the private sector as there was massive damage to commercial buildings during the Gen-Z protests. "Our priority should also be attracting the foreign investment by creating an environment conducive to investment in the country," he said, assuring that it would not take time to revive the national economy and make it vibrant in some years we acted in collaboration.