Suspected Watermelon Seed Smuggling After Betel Nut and Coriander: Where Did the 300 Crore Import Go?

June 25, Kathmandu. In previous years, intermediaries often engaged in ‘set ups’ involving the import of betel nut, coriander, pepper, and okra from third countries to smuggle these items into India.

However, after the government implemented a quota system for importing these items, smuggling routes nearly shut down. Now, intermediaries have found a new avenue for quick profits — the seeds of melons and watermelons.

How extensively is watermelon cultivation practiced commercially within Nepal? The government does not maintain precise data on this. According to the National Potato, Vegetable, and Spice Development Center, watermelon cultivation spans approximately 2,500 hectares in Nepal, yielding 30 to 40 tonnes per hectare.

Yet, customs department data reveal that in the first eleven months of the current fiscal year alone, approximately 19,000 tonnes of melon and watermelon seeds valued at more than NPR 300 crores have been imported under the label ‘melon seed.’ Last year, during the same period (Fiscal Year 2081/82), imports were only slightly above NPR 14 crores.

Padam Adhikari, chief of the Spice Development Center, states that the current demand for these seeds is low. Mostly, watermelon seeds are imported from abroad. “Nepal consumes around 9 metric tonnes of seeds; hybrid seeds require about 7 metric tonnes,” said Chief Adhikari. “Otherwise, roughly 9 metric tonnes are needed.”

Government officials themselves acknowledge significant customs evasion behind the billion-rupee watermelon seed imports. Traders declare defatted seeds—used in items like kitchen sauces at Tare Hotels, bakery products, sweets, vegetable gravy, and nutritious foods such as corn flakes—as ‘agricultural seeds’ to bypass customs scrutiny.

Even for consumption within Nepal, it’s improbable to use such a massive quantity of watermelon seeds. So why are these seeds being imported from Africa and Middle Eastern countries into Nepal?

The straightforward answer is — smuggling into India.

After the Indian government imposed strict restrictions on seed imports to protect domestic production, intermediaries have exploited Nepal’s lax customs policies and open border, experts in the sector note.

“As customs data shows, such an enormous quantity of seed does not enter Nepal for cultivation or consumption. Traders bring defatted seed sacks disguised as cultivation seeds,” a government official familiar with the issue explained. “Agricultural seeds attract customs duties of about 1%, almost negligible. When these seeds are declared as food products, they incur VAT, agricultural improvement fees, and other taxes. Businesses cheat at customs to avoid tax, causing the statistics to be misleading.”

Import Volume Surge

Customs data show that in the first eleven months of the previous fiscal year, Nepal imported 595,222 kilograms (595.22 tonnes) of melon and watermelon seeds, costing NPR 14.3 crores.

This year, imports surged unnaturally to 18,813,847 kilograms (18,813 tonnes), with a total purchase value of approximately NPR 306 crores.

Comparing quantities, this is a 31.6-fold increase from last year’s 595,000 kg. In terms of value, it is a 21.8-fold rise from NPR 14 crores to NPR 306 crores within a year.

Changes in Import Routes and Destinations

Import routes and destinations have dramatically shifted this year. While previous years saw seeds arriving from India, Iran, and Pakistan, this year there were zero imports from Iran and Pakistan, and imports from India dropped to a mere 5,903 kilograms.

Last year, 204,400 kilograms worth NPR 3.84 crores came from Afghanistan; this year, it jumped to 6,449,482 kilograms valued at NPR 107.64 crores.

From the UAE, previous imports of 71,700 kilograms worth NPR 1.27 crores soared this year to 2,551,604 kilograms, with a total value of NPR 41.63 crores.

This reflects an increase of 2,479,904 kilograms alone from the UAE, worth an additional NPR 40.36 crores over last year.

Most surprisingly, African countries entered the picture this year. Previously, there were no imports from Nigeria and Sudan, but they have become the second and third largest suppliers this year.

This fiscal year, 5,811,720 kilograms from Nigeria worth NPR 93.18 crores have been imported.

Similarly, Sudan supplied 3,472,453 kilograms worth NPR 52.43 crores this year, where there were no imports last year. Turkey also exported 301,750 kilograms worth NPR 6.58 crores.

Minimal Change from China and Uzbekistan

Imports from China and Uzbekistan remain relatively stable. Last year, China exported 120,010 kilograms valued at NPR 5.05 crores; this year, quantity slightly increased to 124,935 kilograms, but import value declined to NPR 2.93 crores.

From Uzbekistan, there was an increase from 69,350 kilograms worth NPR 1.25 crores last year to 96,000 kilograms valued at NPR 1.69 crores this year.

Indian Connection Behind Imports Spike

The primary reason for importing seeds from Sudan, Nigeria, and Afghanistan—countries with low domestic consumption—is the Indian market.

India has a substantial demand for melon and watermelon seeds (maggaz) as ingredients in sweets and dry fruits. Approximately 65,000 tonnes are consumed annually, while domestic production covers only 40,000 tonnes.

As cheaper seeds from Africa and China started flooding in, Indian farmers faced difficulties. Consequently, India’s Directorate General of Foreign Trade (DGFT) placed melon seed imports on the ‘restricted’ list.

According to Indian media, from June 2023 onwards, quantitative restrictions were imposed on watermelon seed imports. Although the policy was decided in April 2021, initially, industries were allowed to import 35,000 tonnes of unprocessed maggaz between June and October 2023.

Import was briefly allowed for two months between May and June 2024 but thereafter completely banned, even for industries.

The new rules only allow licensed producers with established processing facilities to import within government-set quotas.

With tightened inspections at Indian seaports, smugglers have turned to the Nepalese route, which experts say is more lenient.

The extent of smuggling was illustrated in an April 20 operation at Mumbai’s Nhava Sheva Port, where Indian customs officials seized 2,710 tonnes of watermelon seeds, falsely declared as ‘cowpea lentils,’ worth INR 139 crores. Unable to smuggle directly into India, traders have found Nepal’s open border a convenient transit point.

Police Crackdowns on Smuggling Operations

Confiscations by police in Nepal’s border areas confirm the watermelon seed smuggling to India.

Just four days ago, on June 22, Bara District Police seized 12,560 kilograms (314 sacks) of watermelon seeds from a truck in Simraungadh Municipality-6, worth about NPR 2.3 million. The driver failed to present customs payment receipts, prompting police to impound the vehicle.

Earlier, on May 10, Rupandehi police recovered 35 sacks of watermelon seeds valued at NPR 2.33 million illegally imported and stored in a warehouse in Bhairahawa.

The same day, police in Rautahat fired six rounds of tear gas to stop a large smuggling consignment near the border, seizing 12,880 kilograms of seeds initially declared as pumpkin seeds worth NPR 9 million, but later revealed to be defatted watermelon seed kernels (maggaz).

On October 8, 2025, 125 sacks of seeds destined for India were confiscated in Rupandehi from a mini truck.

Despite imports exceeding domestic requirements by thousands of times, regulatory bodies have avoided strict action, citing legal loopholes.

No Watermelon Seed Varieties Registered in Nepal

Nobody has registered any watermelon seed variety in Nepal so far. Prakash Acharya, information officer at the Seed Quality Control Center, states that watermelon seed testing is currently ongoing.

Several watermelon seed varieties are registered, but those seeds are imported from abroad. Customs codes for seeds and fruit under the HS classification are identical, making it difficult to distinguish seeds from fruits in import data.

Nepal requires clear legal procedures for seed imports. Only after the National Seed Business Committee lists and publishes varieties in the official gazette can commercial cultivation occur.

Importers must submit documentation for import permits, obtain recommendations from the Seed Business Center, after which the Plant Quarantine and Pesticide Management Center checks phytosanitary requirements to grant entry permission.

Acharya argues that large-scale seed imports cannot occur officially without permit recommendations. Additionally, no recommendation has ever been issued for seed export from Nepal.

“Both import and export require official permits,” he said. “No one has yet taken permits to export seeds.” The customs department’s practice of grouping watermelon and melon under a single ‘melon seed’ heading further complicates data accuracy.

While calls to halt seed imports at customs checkpoints persist, agricultural ministry officials claim regulation of the market and smuggling is beyond their remit.

One agricultural ministry official stated that their Plant Quarantine Office follows international standards to assess imported goods for pests and biological risks only.

“Our role is to check if the product is safe and free from foreign pests. Since imported seeds meant for planting come into contact with soil, a higher biological risk exists, so we enforce strict controls. However, if traders declare these seeds not for planting but for industrial or consumption purposes, we cannot stop them,” the official added.

Once imported, how traders handle the seeds, where they store them, whom they sell to, or whether they smuggle them across the border, falls under the authority of the Ministry of Industry, Commerce and Supplies and market monitoring agencies.

Experts emphasize that given the unnatural volume of imports, agencies responsible for market intelligence and trade administration must not remain silent. In past cases of unnatural import surges of betel nut, okra, and coriander, the Ministry of Commerce intervened, imposing quotas; a similar policy might be necessary for melon and watermelon seeds now.

Four-Year Trend in Watermelon Seed Imports

Analysis of data over the past four years reveals growth in both quantity and value of melon and watermelon seed imports.

In Fiscal Year 2078/79, only 99 tonnes were imported at a cost of NPR 2.03 crores.

In FY 2079/80, imports increased to 127 tonnes, costing NPR 2.14 crores.

Then, in FY 2080/81, imports jumped to 502 tonnes valued at NPR 9.13 crores.

In the previous fiscal year 2081/82, imports reached 1,286 tonnes with an expenditure of NPR 25.7 crores.