The price of bananas, one of the most widely consumed fruits in Nepal, has surged sharply in the Kathmandu Valley, reaching between Rs250 and Rs300 per dozen in retail markets, while wholesale prices hover around Rs210.

Until a few months ago, a dozen bananas cost between Rs80 and Rs100.

Traders attribute the increase partly to the off-season, but say prices spiralled after Nepal imposed restrictions on banana imports from India over concerns about the spread of a fungal disease.

According to the Kalimati Fruits and Vegetable Market Development Board, banana prices have risen by 55.56 percent since the import curbs were issued.

Binay Shrestha, information officer at the board, said the Kuleshwar Fruit Market serves as the authorised dealer of bananas, and the Kalimati board updates its prices based on rates fixed there. “We rely on Kuleshwar market rates, so we are not fully aware of how prices are escalating at the retail level,” he said.

Nepal’s domestic production meets demand during the peak season from July to November, while imports from India fill the gap for the rest of the year. However, this year, the dry-season supply has been disrupted by import restrictions, pushing prices to record highs.

Banana traders say imports from India have effectively stalled since September 18, 2025, triggering an unprecedented price spike.

Amar Baniya, president of the Nepal Fruits Wholesale Traders Association, said that although official imports have stopped for the past six months, Indian bananas are still available in the market through informal channels.

“These are coming through illegal routes,” he said, warning that prices could climb further if restrictions are not lifted before the domestic harvest begins.

Nepal mainly imports bananas from India’s Maharashtra and Andhra Pradesh states.

According to the Department of Customs, banana imports dropped by 50.52 percent in the first eight months of the current fiscal year. Nepal imported 19,439 tonnes worth Rs765.5 million during the period ending mid-March, compared to significantly higher volumes in the previous year.

In the last fiscal year ending mid-July 2025, imports totalled 56,762 tonnes worth Rs2.3 billion.

Baniya said illegal imports have not only caused an estimated daily revenue loss of Rs5 million to the government, but also pose health risks to consumers.

“Previously, imported bananas underwent laboratory testing at quarantine points along the southern border. Now, illegally imported bananas enter the market without any such checks,” he said.

A quarantine official, speaking on condition of anonymity, said the restrictions were imposed to prevent the spread of disease.

The Plant Quarantine and Pesticide Management Center stopped issuing import permits for Indian bananas on September 18 last year after concerns over Tropical Race 4 (TR4), a fungal disease detected in parts of Nepal.

The disease had been reported in banana farms in Tikapur, Kailali, and Pratappur, Nawalparasi, about two years ago. A laboratory test conducted by the Nepal Agricultural Research Council on October 30 later confirmed its presence in a farm in Chitwan, which was subsequently destroyed to prevent further spread.

TR4 is a soil-borne fungus that causes Panama disease, one of the most destructive threats to global banana production, particularly affecting the Cavendish variety. It spreads through contaminated soil, water and tools, can survive in soil for decades, and has no known cure.

Nepali officials say Indian authorities have not formally notified Nepal about the disease, likely due to its potential impact on trade.

According to the Food and Agriculture Organisation of the United Nations, the TR4 strain was first identified in India in 2015 in Bihar and has since spread to other regions, threatening the country’s banana industry.

Officials say India must submit a Market Access Submission Document outlining disease risks and production details before exports can resume.

“Once the study is completed and import conditions are defined, a decision will be taken on lifting the restrictions,” a government official said.

Meanwhile, domestic producers have blamed intermediaries for inflating prices.

Farmers say they are selling bananas at much lower rates, with G9 varieties priced at around Rs50 per dozen and malbhog bananas at Rs75 per dozen at the farm gate.

“Based on farm prices, retail rates should not exceed Rs160 per dozen,” said Bishnu Hari Panta, president of the Federation of Banana Producers. “Middlemen are creating artificial shortages and driving up prices.”

He called on the government to investigate market practices and take action against those responsible for price manipulation.

Nepal produces around 1.3 million tonnes of bananas annually. The fruit is cultivated across approximately 19,000 bigha [12,868 hectares] of land, with major production hubs in Chitwan, Kailali, Kanchanpur, Nawalparasi, Bara, Bardiya, Dang, Rupandehi, Makawanpur, Sarlahi, Rautahat, Morang, Sunsari and Jhapa.