Kathmandu, Aug 23 : Nepal is facing onion shortage after India imposed the 40 per cent export duty on the commodity.

India last week imposed a 40 per cent tariff on the export of onions till December 31 to restrict overseas sales. The move comes amid anticipation of a price rise ahead of the festival season when demand for most commodities goes up, The Kathmandu Post newspaper reported.

The new tariff has severely affected Nepal as several traders in Kalimati Fruit and Vegetable Market -- the Himalayan nation's largest wholesale market for agricultural products-- reported a sudden scarcity of onions.

There is a severe scarcity of onions in the Nepalese markets now. No onion shipments have been delivered since Sunday, and the remaining stocks were sold out by Monday, Binay Shrestha, Information Officer for the country's largest produce bazaar, was quoted as saying in the report.