Kalimati Fruits and Vegetables Markets is the pioneer organized terminal wholesale market in Nepal where retailers, institutional consumers and other bulk consumers procure their supplies. This market alone covers 60 to 70 percent of demand of Kathmandu valley. For giving an organized shape to the marketing of agricultural produce, especially, vegetables and fruits in Kathmandu valley, Kalimati Fruits and Vegetables Wholesale Market was set up by then the Department of Food and Agriculture Marketing Services under the Ministry of Agriculture in 1986.

The need to bring improvement in the state of Kalimati market was identified as a priority. Hence an agreement (NEP/89/CO1) was signed in 1989 between Government of Nepal (GON) and United Nation's Capital Development Fund (UNCDF) to construct and equip the market with physical infrastructures. The present facilities are the outcome of that agreement.