KATHMANDU: Banana prices in Nepal have increased a lot in recent weeks, making it difficult for many people to afford them. Even though farmers are selling bananas at very low prices, consumers are paying very high prices in the market.

The unusual price hike has raised concerns about market manipulation, with middlemen and large traders accused of creating artificial shortages.

Although bananas are widely cultivated across the country, the price gap between farm and retail levels has widened dramatically. Farmers are reportedly selling bananas at as low as Rs. 40/45 per dozen, but consumers are paying anywhere between Rs. 300 and Rs. 400 per dozen in retail markets nearly five times higher.

According to traders, prices have been increasing almost daily. Narayan Ghimire, a fruit seller in Butwal for nearly a decade, said the market has reached an unprecedented level, with prices fluctuating so rapidly that it has become difficult to restock at previous rates.

One of the key reasons behind the surge is the government’s restriction on banana imports from India, enforced since mid-October due to biosecurity concerns. While the move aimed to prevent the spread of the deadly TR-4 fungal disease, it has also created a supply gap that middlemen are allegedly exploiting.

Farmers, however, insist they are not responsible for the price hike. Lakhkhu Yadav, President of the Nawalparasi Banana Producers Association, said farmers are still selling at low prices despite soaring retail rates. “Even now, we are not getting more than Rs. 40/45 per dozen, while the market price has reached Rs. 350. The government must investigate where the margin is going,” he said.

Nawalparasi, a key banana producing region, has also witnessed a sharp rise in prices. Bananas that were sold at Rs. 70/80 per dozen just days ago are now priced at Rs. 150/160 even in the production hub.

According to the Federation of Banana Producers Nepal, farmers earn only Rs. 5/7 per banana (Rs. 84 per dozen at best), highlighting a massive disparity between production and retail prices. The federation claims that the bulk of the profit is captured by wholesalers and retailers.

Nepal produces between 5 to 7 lakh metric tons of bananas annually, while total demand stands at around 9 lakh metric tons. The monthly supply shortfall of 20,000/30,000 metric tons has further contributed to the imbalance, though farmers argue that this gap is seasonal and not severe enough to justify such a steep price increase.

Currently, bananas are cultivated commercially on approximately 15,500 hectares across Nepal, with around 8,000 farmers engaged in the sector. Major production areas include districts across the Terai, such as Jhapa, Morang, Chitwan, and Kailali.

Meanwhile, concerns are also growing over illegal imports. Traders claim that bananas are being smuggled in from India at night, with added commissions increasing retail prices further.

The import restriction was primarily imposed due to the spread of the TR-4 disease, a highly destructive fungal infection that can devastate banana crops. Officials warn that if the disease spreads widely, it could threaten an industry worth nearly Rs. 15 billion.

Farmers and stakeholders have urged the government to step in by strengthening market monitoring, controlling middlemen, ensuring price transparency and introducing minimum support prices. However, despite rising public concern, authorities have yet to take decisive action.

Experts warn that if immediate measures are not implemented, similar price distortions could soon affect other fruits and vegetables in the market.