“After Indian officials started keeping a closer watch, it has been difficult for us to export betel nuts,” said a trader. In the past, the SSB was not so active and smugglers had a field day shipping betel nuts to India which are in high demand there. “We are finding it hard to influence them now,” the trader complained.

India has mobilized more than 100 SSB personnel from Nakalbanda to Satighatta in dozens of locations.

Nepal produces a small quantity of betel nuts, but the volume of exports to India is unusually high as traders re-export products imported from third countries to take advantage of India’s low customs duty on Nepali products.

Local business chambers have also been issuing certificates of orgin to imported betel nuts allowing traders to re-export them to India as Nepali products.

There is huge demand for betel nuts in India from pan and gutka factories. According to traders, there has been increased smuggling of betel nuts to India through Myanmar too.

According to Mechi Customs, betel nut imports through the customs office have decreased in the last fiscal year. Total shipments amounted to Rs2.5 billion against Rs24 billion in the previouos fiscal year.

Exports from Nepal to India have shrunk after it started importing betel nuts from other countries.