JHAPA: Smuggling syndicates that previously used Nepal as a transit point to traffic third-country imports like betel nuts, peas, black pepper, and dried dates into India have now shifted their focus to watermelon (Citrullus lanatus) seeds as their lucrative new commodity, authorities suspect.

According to the analysis of police and customs officials, brokers who were said to have slowed down after the government implemented a quota system on the import of betel nuts, peas, black pepper, and dried dates have increased the import and transaction of watermelon seeds. They claim that melon seeds have recently appeared on the list of goods that legally enter Nepal from third countries and are surreptitiously transported to India from here.

A recent example of this is the large quantity of melon seeds seized in Bhadrapur, Jhapa, on Sunday.

On July 12 this year, police seized 948 bags, or 37,920 kilograms, of watermelon seeds hidden in the house of Bhim Lall Subedi located at Gyanechowk, Bhadrapur Municipality-3, Jhapa. A team deployed under the command of Superintendent of Police Basundhara Khadka, chief of the District Police Office Jhapa, found the said quantity of watermelon seeds based on special information.

According to the police, the market value of the seized melon seeds is estimated to be more than Rs 30 million. Ranjan Awa, Deputy Superintendent of Police of the District Police Office Jhapa, says that the process of handing over the said goods to the Bhadrapur Customs Office has been advanced.

According to police investigation, Pashupati Export Import and Kuber Export Import companies, which have offices in Kathmandu, had sent watermelon seeds from Birgunj in the name of ‘Maa Durga Order Suppliers’ in Bhadrapur on various dates. The preliminary analysis of the police is that the plan was to stockpile the goods near the border and cross them into India through porters at an opportune time.

Increased imports following ban in India

According to Indian media, the Government of India has imposed quantitative restrictions on the import of watermelon seeds since June 2023. It is said that after India tightened imports for non-industrial purposes with the aim of protecting domestic farmers and production, a shortage of it was seen in the Indian market and the price increased.

Officials say that after tightening was enforced at India’s seaports, smugglers started using Nepal’s relatively relaxed customs procedures and open border.

Officials say government statistics show that only about nine metric tons of watermelon seeds are consumed annually in Nepal. However, according to the data of the Department of Customs, 17,347 tons of watermelon seeds have entered Nepal in just 10 months up to mid-April of the current fiscal year 2025/26. This quantity is about 13.5 times higher compared to the last fiscal year and about 34.5 times higher compared to the fiscal year 2023/2024.

Watermelon, scientifically named Citrullus lanatus

Customs officials say that some traders declare peeled seeds used in the kitchens of star hotels, bakeries, and sweets, meaning watermelon seeds, as ‘agricultural seeds’ at customs.

When importing under the name of agricultural seeds, the customs duty is only about one percent. However, when importing watermelon seeds as a food item, a tax of up to 24.30 percent is levied, including VAT (Value Added Tax) and agricultural reform fees.

“It appears that watermelon seeds, which cost about Rs 900 per kilogram, were brought in by paying low customs duty, claiming them to be agricultural seeds,” says a customs official. “Such a large quantity is needed in Nepal neither for farming nor for domestic consumption. Its main destination seems to be the Indian market itself.”

Trader sources say that the cost of watermelon seeds when imported into Nepal is about Rs 220 per kilogram. However, in the markets of Uttar Pradesh and Bihar in India, it is currently sold for Rs 1,200 to Rs 2,000 per kilogram.

Therefore, officials estimate that smugglers make a profit of more than Rs 1,000 per kilogram when they succeed in crossing the border. They say that because of this high profit, the attention of traders who were active in betel nuts and peas in the past has now turned toward watermelon seeds.

According to the National Potato, Vegetable, and Spice Crop Development Center, commercial watermelon farming in Nepal takes place on only about 2,500 hectares. In comparison, the imports worth billions of rupees shown by customs data and the seizures taking place in the border areas indicate that the size of the illegal trade using Nepal as a transit point has increased.

Unprecedented import spikes

According to the Department of Customs, at least 17,347 tons of watermelon seeds worth Rs 2.846 billion have already been imported in the 10 months up to mid-April of the current fiscal year.

Based on quantity, this import is about 13.5 times higher than the last fiscal year and about 34.5 times higher than that of the fiscal year 2023/2024.

House of Bhim Lall Subedi located at Bhadrapur Municipality-3, Jhapa, where the watermelon seeds were seized

According to the department, the highest amount of watermelon seeds, 6,345 tons, has been imported from Afghanistan in the current fiscal year. After that, 5,119 tons were imported from Nigeria, 2,834 tons from Sudan, and 2,471 tons from the United Arab Emirates.

In the last fiscal year, 1,286 tons of watermelon seeds worth Rs 257 million were imported. Out of that, 445 tons were from Afghanistan, at least 324 tons from Nigeria, and 145 tons from China.

The data of the Department of Customs shows that the import of watermelon seeds started increasing rapidly from mid-March 2025. The department stated that 502 tons of watermelon seeds worth Rs 91.3 million were imported in the fiscal year 2023/24, at least 127 tons worth Rs 21.4 million in the fiscal year 2022/23, and 99 tons worth Rs 20.3 million in the fiscal year 2021/22.