For a long time, the Government of Nepal has been restricting, tightening controls on, and regulating the import of certain commodities—such as black pepper, peas, betel nut, and dates—under various pretexts. Corruption has repeatedly been cited as the primary reason behind these measures. When restrictions and controls are imposed, import permits become mandatory, and it is alleged that obtaining such permits involves large-scale bribery.

Black pepper, peas, and dates are commodities consumed domestically in Nepal. However, the biggest and most controversial trade is said to involve betel nut. In Nepal, betel nut is primarily consumed for the production of gutkha. An even more troubling aspect, however, is its export to India.

There are allegations that betel nut is imported into Nepal from third countries and then exported to India by falsely labeling it as “Nepali origin.” Kamal Malpani, the owner of Shriram Tobacco, has long been accused of importing betel nut for gutkha production and sending it to India through various channels. According to information received, betel nut is imported in quantities far exceeding domestic requirements and then exported to India through individuals holding Certificates of Origin issued in Nepal.

It is reported that Kamal Malpani himself, along with his close associates, has been frequently visiting the office of Minister for Industry, Commerce and Supplies Anil Kumar Sinha. The stated purpose is to exert pressure to ease the betel nut import process. According to a quoted remark attributed to Malpani, “We will do whatever needs to be done, but the import process must be made easier. Industrialists are facing severe hardship.” This statement is also being interpreted as an implicit signal of willingness to spend money—suggesting bribery—to achieve that objective.

It is said that due to betel nut smuggling, honest traders dealing in black pepper, peas, and dates are also suffering adverse consequences.

While the Minister for Industry, Commerce and Supplies is reportedly positive about easing import procedures, he is also understood to be concerned about being dragged into controversy due to widespread betel nut smuggling and the allegations linked to it. Although pressure has been mounting to facilitate imports of commodities consumed domestically—such as black pepper, peas, and dates—longstanding accusations of smuggling, fraudulent exports, and lobbying related to betel nut have made policy decisions highly sensitive. For this reason, it is said that even at the ministerial level there is concern that easing import procedures without ensuring transparency and accountability could trigger new controversies.