Nepal-China trade hit as Bhotekoshi floods delay festival goods supply

Flash floods on the Bhotekoshi River have disrupted cargo movement between Nepal and China. The damage threatens festival supplies, raises transport costs and deepens traders' losses.

In Short

• Hundreds of festival-bound Chinese containers remain stranded after Rasuwagadhi border damage
• Floodwaters swept away over 200 Nepali containers, causing NPR 2 billion losses
• Traders have diverted 176 cargo trucks through Korala despite severe limitations

Flash floods in Nepal's Bhotekoshi River have badly hit trade with China, raising worries over the timely supply of Chinese goods and possible price rise ahead of the festival season, according to a media report on Wednesday. The floods damaged border infrastructure and roads, disrupting the movement of cargo trucks bringing goods from China.

The disruption has forced traders to look for other routes at a time when demand is expected to rise before Dashain, Tihar and Chhath. Traders say the damage could affect the supply of festival goods and push up transport costs.

Importing goods from China to meet immediate demand has become difficult, Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association, said. “More than 500 to 600 Chinese containers carrying goods for Teej, Dashain, Tihar and Chhath were moving from China towards Kerung. Many of these cargoes have been stranded after the Rasuwagadhi border was damaged,” he said. He added that more than 200 Nepali containers were swept away in the floods. “The floods swept away 200 containers, while businessmen have suffered losses of at least NPR 2 billion,” he said.

Rasuwagadhi is one of Nepal's main trading points with China and handles a large share of Chinese imports. The situation has become harder for traders because the Tatopani border, another key Nepal-China trade route, is also not operating normally. With both major northern routes disrupted, traders have had to divert cargo through the Korala border in Mustang, Karki said. According to him, around 176 cargo trucks have already been diverted towards Korala.

Karki said the Korala route cannot work as a practical year-round alternative to Rasuwagadhi because of difficult terrain, high altitude and longer travel time. “Using the Korala border is our compulsion, not an alternative,” he said. He added that it could take at least 10 to 12 days to move cargo from China to Nepal and back through Korala, compared with the shorter routes used earlier. Traders said the cost of moving one cargo vehicle from the Korala border to Kathmandu is now around NPR 450,000 to NPR 500,000, which Karki said was about 10 to 15 per cent higher.

Chinese goods make up a large share of items sold in Nepal during the festival season, including garments, footwear, electronics, electrical goods, household items, decorations and toys. Businessman Narayan Pandit said traders were worried that goods already ordered for the festivals may not reach the Nepali market on time because of the longer route and damaged border infrastructure. “Traders are worried about bringing goods already ordered from China on time for the upcoming festivals because of the longer route,” he said. As of Wednesday, more than 1,350 people had died in the flash floods, while search and rescue operations were continuing for more than 5,000 missing people.

With PTI Inputs

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