KATHMANDU (KATHMANDU POST/ASIA NEWS NETWORK) - Kathmandu's vegetable markets are not shedding tears over the loss of onion shipments from India. The traders have quickly turned north to China to fulfil the demand for the essential cooking ingredient.

The price of onions has risen steeply in the past few months after India imposed a ban on exports, triggering frantic buying and resultant shortages.

Chinese onions started flowing into Kathmandu's markets almost immediately after suppliers from India ceased exports.

Traders say that if the trend continues, the red bulbs could make the list of largest imports from across the Himalaya.

In fiscal 2018-19, Nepal bought goods worth 917 billion Nepalese rupees (S$11 billion) from India, accounting for 64.7 per cent of total imports.

Nepal's imports from China were valued at 205 billion Nepalese rupees, accounting for 14.5 per cent of imports.

India slapped a ban on onion exports in September to maintain domestic availability, causing severe shortages over Asia, including Nepal.

Smugglers jumped to take advantage of the embargo, and they started slipping the vegetable into the country through the leaky Nepal-India border.

The price of contraband onions hit a new high of 250 Nepalese rupees per kg in the Kathmandu Valley, costing the same as chicken meat.

Binaya Shrestha, deputy director at the Kalimati Fruits and Vegetables Market Development Committee, said that the reason behind the high price of Chinese onions was transportation costs.

"It takes more than a week for the commodity to arrive in Kathmandu from China," Mr Shrestha said.