KATHMANDU, Sept 9: Devastating flash floods in Nepal’s Bhotekoshi River have severely disrupted trade with China, raising concerns over the timely arrival and prices of Chinese goods ahead of the upcoming festival season, according to a media report.
The floods have damaged border infrastructure and connecting roads, disrupting the movement of cargo trucks carrying imports from China, The Rising Nepal reported.
The disruption has forced traders to seek alternative routes just as demand for consumer goods is expected to rise ahead of Dashain, Tihar and Chhath festivals.
“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,” said Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association.
He said importing goods from China to meet immediate demand had become difficult and warned that the disruption could affect supplies and increase transportation costs.
More than 200 Nepali containers were also swept away by the floods, causing losses of at least NPR 2 billion, Karki said.
Rasuwagadhi is one of Nepal’s major trading points with China and handles a significant volume of Chinese imports.
The situation has been compounded by disruptions at Tatopani, another key Nepal-China trade route. With both major northern routes affected, traders have been forced to divert cargo through the Korala border in Mustang.
Around 176 cargo trucks have already been diverted towards Korala, Karki said, but noted that the route could not serve as a practical year-round alternative because of its difficult terrain, high altitude and longer travel time.
“Using the Korala border is our compulsion, not an alternative,” he said.
The diversion is expected to increase both transportation time and import costs. Karki said transporting cargo between China and Nepal through Korala could take 10 to 12 days.
The transportation cost of a cargo vehicle travelling from Korala to Kathmandu has risen to around NPR 450,000-500,000, representing an increase of about 10 to 15 per cent, he said.
Chinese goods account for a substantial share of merchandise sold in Nepal during the festival season. Traders import garments, footwear, electronics, electrical equipment, household products, decorations, toys and other consumer goods from China.
Traders are now worried that goods already ordered for the festival season may not reach markets on time because of the longer routes and damaged infrastructure.
“Traders are worried about bringing goods already ordered from China on time for the upcoming festivals because of the longer route,” businessman Narayan Pandit said.
Meanwhile, the floods have caused a major humanitarian crisis in Nepal. As of Wednesday, more than 1,350 people had died, while search and rescue operations continued for over 5,000 missing people.
