The market was established in 1987 as a wholesale center at Kalimati by the Nepal government using United Nation Capital Development Fund with a budget of NPR 4.6 million.
The sellers have to sell minimum of five kilograms in the market.
There is also a retailing market where small traders can sell their products.
Later due to increase in demand, the infrastructure of the market was upgraded by Nepal government and UNCDF.
In 2058 BS, the bill was amended to regulate the market under federal government.