KATHMANDU, Oct 10: With Dashain approaching, Kathmandu’s major markets remain unusually quiet as disruptions along northern trade routes choke imports from China, trigger shortages and push prices up by as much as 50 percent.
Markets in Asan, Indrachowk, New Road, Mahabouddha, Putalisadak, Lagankhel and Bhaktapur have yet to see the usual festive shopping rush. Consumers are facing higher prices and shortages of goods, including clothing and vehicles.
Three major trade routes with China—Rasuwagadhi, Tatopani-Khasa and Korala—have been disrupted, affecting overland trade ahead of the festival.
The Rasuwagadhi border point has remained closed since floods in the Bhotekoshi River in Rasuwa on August 26 damaged customs facilities, roads and other infrastructure. China subsequently halted imports and exports through the Tatopani-Khasa crossing in Sindhupalchok, citing landslide risks.
Dashain Fervor Crowded Market places V/S Shoppers
Traders then turned to the Korala border point in Mustang, but continuous rainfall from September 25 to 27 disrupted the Beni-Jomsom road, preventing goods from reaching Kathmandu. Around 200 cargo containers and hundreds of electric vehicles remain stranded in Mustang.
The disruptions have affected supplies ordered for Teej, Dashain, Tihar and the winter season. Automobile dealers have also been unable to deliver new vehicles booked in August.
Tej Prasad Acharya, president of Ekata Trade Association Nepal, said shortages and rising transportation costs had pushed up market prices.
“Transporting goods that normally cost Rs 75,000 per truck has become as expensive as Rs 500,000 after having to reroute shipments,” Acharya said, adding that traders had little choice but to factor the additional costs into retail prices.
He said Chinese imports normally take around 15 days to reach Nepal by road. Prolonged disruptions during the festive season have caused significant losses to traders and the national economy, he added, urging the government to step up diplomatic efforts to reopen the crossings.
Dipendra Shrestha, a trader affiliated with the Nepal Trans-Himalayan Commerce Association, said businesses had been unable to bring in adequate festive supplies through the northern routes this year. He estimated that prices had increased by 30 to 50 percent compared with last year's Dashain.
China accounts for around 80 percent of Nepal's readymade garment trade and is also a major source of electric vehicles and other imported goods. With overland trade disrupted, traders have increasingly relied on India to meet demand for essential supplies.
Consumers are also feeling the impact in their kitchens. A bunch of mustard greens now costs Rs 60, while prices of daily essentials and food grains have risen by 25 to 50 percent. Cumin prices have climbed to Rs 570-600 per kilogram, up from Rs 380-420 during last year's Dashain.
Dashain is Nepal's biggest festival and a major driver of economic activity, but disrupted supply chains and rising prices are weighing on traders and consumers just as seasonal demand should be picking up.
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