Australia halts imports of Nepal’s Gundruk, Millet and Soybean products over pest, Certification concerns

KATHMANDU: Australia has imposed an immediate restriction on the import of several agricultural and food products from Nepal, including gundruk, millet (kodo), soybean (bhatmas), buckwheat, maize and other food items, after pests were reportedly detected in consignments and concerns emerged over the credibility of fumigation-related certification documents.

The move comes after Australia’s National Plant Protection Organization (NPPO) raised serious questions regarding Nepal’s phytosanitary compliance and treatment verification system, creating a major setback for Nepal’s agri-food exports and diaspora-focused food trade.

According to Prakash Paudel, Senior Crop Protection Officer at the Plant Quarantine and Pesticide Management Centre, technical lapses and irregularities in treatment certification have triggered the export disruption.

“Under international quarantine protocols, phytosanitary treatment certificates must be issued by the country where the treatment or fumigation is actually conducted,” Paudel said, adding that Nepal currently lacks treatment technology that meets Australian standards.

Nepal’s Australia-bound food exports routed through India since 2021

Since 2021, Nepal has been exporting products to Australia by sending shipments to Kolkata, India, where fumigation treatment was carried out before the products were exported under certificates issued from Nepal.

However, Australian authorities have now flagged irregularities in this process.

According to Paudel, cases were identified in which treatment documents claimed goods had already undergone fumigation in Kolkata even while the products physically remained in Nepal.

Authorities also found instances where plastic-packaged food products were falsely certified as treated, despite treatment protocols being technically incompatible.

“Businesses and treatment providers in Kolkata were found involved in questionable practices, including issuing suspicious documentation,” he said.

Australia’s NPPO reportedly informed Nepali authorities via official communication that it could no longer fully trust Nepal-issued phytosanitary certificates under the current arrangement.

The Australian side has reportedly stated that if treatment occurs in India, then the Government of India must issue an official re-export phytosanitary certificate, taking full responsibility for the treatment process. Otherwise, Nepal must establish internationally compliant treatment facilities within its own territory.

Pest detection triggers immediate import suspension

The restriction intensified after Australian authorities reportedly detected pests in recent shipments from Nepal, prompting biosecurity concerns.

Australia has now provided Nepal with two pathways to resume exports.

The first option requires Nepal to establish domestic treatment facilities using machinery and standards approved by Australian authorities.

The second option would allow treatment in a third country such as India, but only if Indian government agencies formally guarantee the process and issue a re-export phytosanitary certificate.

However, Nepali officials acknowledge practical limitations.

Paudel said Nepal lacks the institutional capacity to physically monitor every container in Kolkata, while Indian authorities are reportedly reluctant to assume full responsibility for Nepal-bound certification guarantees.

Nepal preparing domestic fumigation infrastructure

To address the crisis, Nepal has begun preparations to establish an internationally recognized treatment center within the country.

“Australia has instructed the use of specific certified brands of fumigation equipment,” Paudel said. “The procurement process has already moved forward, and we expect an international-standard treatment facility to be operational in Nepal by the end of this fiscal year.”

The government’s plan to establish a domestic fumigation center has, however, remained stalled for years due to administrative and legal hurdles.

A proposed treatment center at the Horticulture Centre in Kirtipur has been delayed due to land disputes involving Tribhuvan University, preventing construction from moving ahead.

‘Non-tariff barrier’ or Nepal’s compliance failure?

Officials at Nepal’s Ministry of Agriculture and Livestock Development have described the development as part of a broader pattern of “non-tariff barriers” often used by developed economies, where strict quarantine and quality standards limit imports from developing nations.

Yet officials also concede that Nepal’s weak domestic compliance capacity remains a major bottleneck for exports.

Nepal still lacks adequate internationally compliant fumigation and quarantine facilities, forcing exporters to rely on third-country processing hubs such as Kolkata — a system increasingly viewed as risky and inefficient.

“We have not fully met destination-market quarantine and quality standards,” a ministry official said. “For processed and value-added products, market-specific requirements are even more important than for primary agricultural goods.”

Nepal-Australia trade imbalance may widen

The restriction could deepen Nepal’s already significant trade deficit with Australia.

According to recent trade data from the past nine to ten months, Nepal exported food products worth approximately Rs 1.5 billion to Australia, while imports from Australia reached nearly Rs 10 billion during the same period.

This means Nepal is already facing a trade deficit of roughly Rs 9 billion with Australia.

Industry observers warn that prolonged restrictions on Nepali food exports could further weaken Nepal’s foreign currency earnings, reduce opportunities for agro-based SMEs, and make bilateral trade even more one-sided.

The suspension is particularly significant for Nepali exporters targeting the large Nepali diaspora market in Australia, where products such as gundruk, millet, soybean, buckwheat and traditional food ingredients have become increasingly popular.