Author: space4knews

September 3, Kathmandu – In response to the challenges faced by entrepreneurs and businesspeople in transporting and supplying essential materials amid difficult circumstances caused by a disaster, the Nepal Chamber of Commerce has established a facilitation desk.

The facilitation desk has been set up at the Chamber’s secretariat in Jamal. The closure of key roadways, including the Prithvi Highway and other major transportation networks, has disrupted supply chains and transportation for industrialists and business operators, prompting the establishment of this desk.

Through this desk, coordination will be enhanced among relevant government bodies, local administrations, security agencies, commercial entities, and transport operators to resolve potential challenges in the delivery of relief materials.

Additionally, the Chamber has assured that all possible support will be provided to facilitate smooth passage for vehicles carrying essential goods.

September 3, Kathmandu — The catastrophic floods that hit the Bhote Koshi and Trishuli rivers on August 26 have started to directly impact household kitchens.

Major roadways entering the Kathmandu Valley have been washed away due to floods and landslides, halting cargo vehicles from entering and exiting the capital, thereby disrupting the supply system of daily essentials.

This disruption has led to a rise in prices for staples such as grains, cooking oil, fresh vegetables, fruits, and other essential commodities in the market.

The crucial Nagdhunga-Muglin road segment, considered the lifeline of the Kathmandu Valley, has been washed away near Krishnabhir due to the Trishuli floods.

Additionally, the Nagdhunga-Naubise road section suffered severe damage near the Patle forest area on Wednesday morning, completely affecting transportation from Krishnabhir.

Since Sunday, cargo vehicles have been unable to enter or leave Kathmandu, severely impacting the flow of goods. Consumers, fearful of impending shortages, have begun stockpiling food supplies.

Rice, cooking oil, and sugar prices sharply increase

Consumers report that wholesale traders have been hoarding goods, causing retail prices to spike. Retail traders blame the rise on increased transportation costs.

According to grocery businessmen in New Baneshwor, sugar prices have risen from NPR 120 per kilogram a few days ago to NPR 140 now.

“Wholesale sugar is unavailable and in short supply,” said one trader. “Due to high prices, buyers have stopped purchasing, so I have also halted sales.”

Prices of rice and cooking oils have also risen significantly, with various types of rice increasing by NPR 200 to 300 per kilogram.

For example, cumin-flavored fine rice which previously cost NPR 2,400 for 20 kg now ranges from NPR 2,600 to NPR 2,700.

Sunflower oil prices vary between NPR 300 to 350 per liter depending on the brand, and mustard oil is close to NPR 400 per liter according to traders. Prices of pulses and lentils have remained relatively stable so far, although delays in road reopening may affect them soon.

Retailers face difficulty selling sugar without proper invoices: Retail Traders Association

The Nepal Retail Traders Association states that prices for sugar, cooking oil, and rice were already high before the disaster, and the recent crisis has further impacted the market.

According to the association, there is no immediate shortage of food in Kathmandu Valley, but effects may be seen in the coming days. Particularly, wholesalers’ failure to issue proper bills has caused difficulties for sugar traders.

Amulakaji Tuladhar, the association’s General Secretary, said retailers currently have stock sufficient for 15 days to one month, so shortages are not yet critical. Only when fresh stock arrives will the true market situation become clear.

“The situation will become clearer next week,” Tuladhar said. “At present, only existing stocks are being sold, so there is no shortage.”

However, he admitted complaints about rising prices. He highlighted that large wholesale traders not providing proper invoices has caused problems for retailers.

“Many complain about sugar price hikes, but wholesalers don’t issue proper bills,” he explained. “This makes it difficult for retailers to issue bills, and they risk having to suspend their businesses.”

He also claimed that cooking oil is still available at previous prices, and only with the arrival of fresh supplies will it be confirmed whether prices have risen post-floods.

Rise in transportation costs starting to impact market prices

Complaints about rice prices reaching as high as NPR 300 per kilogram have surfaced, but industry representatives deny any increase in wholesale prices.

Vibhor Agrawal, a member of the Nepal Rice, Oil, and Pulses Industry Association, explained that the industry continues to send products at previous prices, though transportation costs have risen due to roadblocks.

He justified no price hike on the grounds that the raw paddy price remains unchanged.

“We have not increased rice prices; we are supplying at old rates,” Agrawal said. “However, due to poor transport access from Biratnagar to Kathmandu, additional freight charges have accrued.”

Price increases passed on to consumers due to higher freight

Agrawal stated that truck freight from Biratnagar to Kathmandu used to cost NPR 150 but has now risen to NPR 200. Use of smaller vehicles caused by lack of large trucks has contributed to the freight hike.

“Previously, freight was NPR 150 from Biratnagar to Kathmandu; it is now NPR 200,” he explained. “This freight cost is ultimately borne by dealers and, in turn, by consumers.”

He said the industry price for 25 kg of cumin-flavored fine rice remains NPR 2,550.

Due to discrepancies in freight billing, companies have started issuing ‘ex-factory’ bills and are asking dealers to arrange their own transportation.

Price hikes on existing stock deemed unjustified

Agrawal also condemned dealers and shops who are exploiting the crisis to sell old stock at elevated prices.

“If dealers or shops have old stock, they must sell at old prices. Raising prices on old stock is inappropriate,” he said. “The government must inspect and verify these practices.”

Prices of apples and garlic also high

Price increases are not limited to food grains; vegetables and fruits have also become expensive. Import disruptions have forced retailers in the Kalimati fruit and vegetable market to raise prices.

Dev Rana, a vegetable merchant in Budhanilkantha, revealed that landslides have halted roads, resulting in lower vegetable supply and only limited quantities reaching from nearby districts, causing sharp price increases.

“Okra prices have climbed to NPR 70 per kilogram,” he said. “Vegetable shortages in Kalimati and other markets have driven prices up.”

Fruit and vegetable traders in New Baneshwor said that imported onions are priced at NPR 120 per kilogram, while Chinese garlic has reached NPR 350 due to border closures with China caused by the floods, which have also disrupted transportation routes from India, resulting in rising potato prices.

“Wholesale prices from China, from garlic to apples, have risen,” said a trader. “Some wholesalers have also started selling stock at elevated prices.”

The prices of apples and pomegranates have surged as well; an apple carton (20 kg) now costs between NPR 2,000 and NPR 2,200. Previously, the same carton sold for NPR 4,500, but now retails between NPR 7,200 and NPR 7,500.

“Apples that used to be affordable now cost around NPR 450 per kilogram,” said a trader. “It’s difficult to get goods wholesale in carton quantities now.”

Pomegranate prices have also increased to NPR 350–400 per kilogram, while bananas sell for NPR 200–250 per dozen.

Cooking gas shortages intensify

With road blockades, a shortage of cooking gas has begun in the Kathmandu Valley. Already scarce, the blockade has exacerbated the gas crisis, forcing consumers to wander with empty cylinders in search of supply.

All depot dealers in the Valley have long queues for gas. The Nepal Oil Corporation is preparing alternative routes to bring in gas.

Executive Director Nagendra Sah of the corporation said arrangements are underway to import gas from the Terai region, and distribution will be prioritized accordingly.

Currently, the corporation has halted gas sales for commercial use to prevent shortages.

Priority gas distribution is planned for students, the vulnerable, patients, senior citizens, ashrams, persons with disabilities, and flood victims via open centers, although consumer confidence remains low.

The Ministry of Industry, Commerce, and Supplies has ordered strict action against traders who arbitrarily increase prices during the disaster and festive seasons, along with conducting warehouse inspections.

During discussions with officials from the Department of Commerce, Supplies, and Consumer Protection on Monday, Minister Gaurikumar Yadav instructed to make market monitoring more effective.

The ministry formed 16 teams, of which 10 have already been deployed to markets.

Ten market monitoring teams deployed: Ministry

Ministry spokesperson Netra Prasad Suvedi confirmed ongoing monitoring and said preliminary reports have begun to arrive. The remaining teams will be sent out soon.

The monitoring teams are also acting on consumer complaints, particularly focusing on areas reporting cooking gas shortages, the spokesperson added.

“Monitoring is ongoing, and some actions have already been taken,” he said. “Teams are also checking markets for sugar, rice, cooking oil, and vegetables.”

September 2 (Bhadra 17), Kathmandu – Nepal’s key corridor for attracting high-spending international tourists, the Bhote Koshi/Trishuli corridor, is facing a severe crisis that has negatively impacted the country’s tourism sector.

Hundreds of Nepali and foreign tourists on the Mansarovar and Gosainkunda pilgrimages lost their lives in the devastating flood on August 26 (Bhadra 10), and many remain missing. According to the government’s latest estimates, the tourism sector has sustained damages amounting to approximately NPR 5 billion.

Culture, Tourism and Civil Aviation Minister Khadkaraj Paudel estimated that around 142 hotels in this river corridor have been washed away.

During a presentation to the House of Representatives’ Tourism Committee, Minister Paudel disclosed that 57 restaurants and 141 tourism vehicles were damaged. The flood also harmed 27 heritage sites across Nepal. Key trekking routes at popular destinations like Gosainkunda and Langtang, which attract thousands of weekly visitors, suffered significant damage. Some trails have been completely eroded and require reconstruction.

Former Nepal Tourism Board CEO Deepkaraj Joshi stated that the Bhote Koshi disaster has had a multifaceted impact on the tourism industry.

He noted that the Kailash Mansarovar pilgrimage is an important package attracting high-spending tourists during Nepal’s monsoon season. Many Indian pilgrims spend generously while journeying through Nepal, contributing significantly to the local tourism economy.

Recently, a large number of Indian and Non-Resident Indian tourists have been undertaking the Kailash Mansarovar journey from Nepal. Joshi emphasized that these tourists contribute considerably to employment creation and Nepal’s economic vitality.

The corridor also supports the popular trekking regions of Langtang and Gosainkunda. According to Langtang National Park, over 50,000 tourists visit these trekking routes annually, making them highly popular domestic and international destinations.

Gosainkunda attracts many religious tourists every year, contributing significantly to both local and national tourism industries, Joshi explained.

Tourism professionals and workers also lost

The flood caused thousands of human casualties, including skilled personnel across various sectors. The tourism industry has lost business owners, investors, and hardworking laborers.

Joshi emphasized that the industry will need years of effort to recover from these damages. He said, “Human loss cannot be compared, but in addition, business operators and workers who have made invaluable contributions to tourism have been lost to the flood.”

Tourism organizations report that many tour and trekking guides have also lost their lives in this disaster.

Persistent concerns about the tourism image

Following the Bhote Koshi flood, countries such as the United States have issued travel advisories cautioning their citizens about visiting Nepal, which has spread negative publicity and positioned Nepal as a ‘red zone’ destination globally.

However, the reality is that the problem is localized to this river corridor and the Trishuli riverbank, where road networks are affected.

Nevertheless, the widespread portrayal of Nepal as a dangerous destination could have long-term detrimental effects on tourism, Joshi cautions.

Joshi stated, “Nepal is a natural destination that tourists worldwide love to return to repeatedly. Our natural assets attract tourists, but ongoing messages of risk and insecurity regarding these assets will not serve Nepal’s long-term interests.”

He further stressed the need for the government to immediately collaborate with relevant agencies to remove this negative image. “Physical infrastructure can be rebuilt, but once tourism reputation is lost, regaining it is very difficult,” he added.

Decline in tourist arrivals confirmed by statistics

The destructive flood in the Bhote Koshi/Trishuli river corridor has clearly affected tourist arrivals. In August 2023, Nepal recorded 85,444 international tourists, which is 3,336 fewer than the same month last year. August 2022 had seen 88,680 arrivals, reflecting a 3.6% decrease.

On August 26, floodwaters entering through the Rasuwagadhi border severely affected Rasuwa, Nuwakot, Dhading, and surrounding river systems, causing major human and physical damage.

The flood also impacted local and foreign tourists undertaking the Kailash Mansarovar and Gosainkunda pilgrimages. Following the flood, various countries, including the United States, issued travel advisories warning their citizens about travel to Nepal.

According to the Nepal Tourism Board, India was the top source of tourists in August, with 26,373 arrivals, accounting for 30.87% of the total. China followed with 10,304 tourists, an increase of 7,533 from August last year (36.78% growth).

Sri Lanka accounted for 8,710 tourists, a 46.24% rise compared to last year. The United States sent 6,293 tourists, Bangladesh 4,487, and the United Kingdom 3,476.

Stakeholders’ perspectives

Acting CEO of the Tourism Board Hikmat Singh Air shared that joint communication efforts have been ongoing during the crisis. At a discussion held by the parliamentary tourism committee, he mentioned proposals to enhance the “Calling Nepal” campaign, including offers of discounts or free services on airfare and hotels if necessary.

Vinayak Shah, Chairman of the Hotel Association Nepal (HAN), described the current crisis as unprecedented. He called for Nepali embassies and missions abroad to actively communicate that Nepal remains safe for visitors.

Shah affirmed the government’s commitment to collaborating with the private sector to strengthen campaigns conveying “Nepal is open,” aiming to revitalize the tourism industry.

Sagar Pandey, President of the Trekking Agencies Association of Nepal (TAAN), reported that around 995 foreign tourists and Indian nationals remain missing from the affected areas. He also reported significant damages to tourism infrastructure.

Pandey urged that through international media present in Nepal, clear messages regarding rescue and restoration efforts as well as Nepal’s readiness for tourists should be broadcast.

Bharat Jung Pandey, President of Nepal Association of Tour and Travel Agents (NATTA), stressed that relief and restoration decisions should be based on humanitarian grounds.

He recommended that to regain international market trust, the government should offer free visas, hotel discounts, and easier travel access to tourists until conditions improve.

Furgelje Sherpa, President of the Nepal Mountaineering Association (NMA), emphasized that search and rescue are the top priorities post-flood. NMA’s specialized teams have been deployed to affected areas since day one, possessing about 12,600 rescue-capable experts, ready for immediate mobilization upon government instructions.

Sherpa also highlighted that helicopters are ready for rescue missions and stressed maximizing available resources.

Rishi Bhandari, General Secretary of the Expedition Operators Association Nepal, called for long-term arrangements to ensure social security for tourism workers.

He added that priority must be given to diplomatic coordination and movement related to Hot Springs and Kerung border crossings. Legal procedures, including identification and death certificates for deceased persons, must be simplified.

Measures by the government

On Tuesday, Culture, Tourism and Civil Aviation Minister Khadkaraj Paudel released a video message inviting tourists worldwide to visit Nepal. The Prime Minister conveyed that visiting Nepal currently is not only a travel experience but also a way to support flood victims.

He acknowledged that while some areas suffered from flooding, other destinations remain secure, and efforts are underway to communicate that Nepal is safe for tourists. The same day, he convened a meeting with relevant stakeholders.

The meeting decided to regularly monitor and manage affected tourists through rapid response teams including the Tourism Board and sectoral organizations.

Authorities have been instructed to reschedule flights for foreign tourists unable to return home in a timely manner due to the disaster.

Efforts are ongoing to provide accurate information to families of disaster-affected, deceased, or uncontactable foreign tourists. Coordination with relevant entities continues to facilitate easier entry for families wishing to come to Nepal and to smooth the travel of tourists and pilgrims through northern border points.

The ministry, in coordination with provincial governments, local bodies, the private sector, and tourism organizations, aims to reduce the impact of the disaster, revive tourism activities, protect business operators and workers, and restore sector functions, said Spokesperson Shobhakar Regmi.

September 3, Kathmandu – The catastrophic Bhote Koshi flood completely damaged one Ncell mobile tower and over 60 kilometers of optical fiber lines located in Timure, Rasuwa.

According to initial estimates, the flood and landslides have caused Ncell an economic loss exceeding NPR 90 million, the company reported.

In total, 27 mobile towers in Nuwakot, Rasuwa, and Dhading were affected by the floods and landslides, of which 24 have been restored to operation, the company stated.

Among the remaining three towers, one in Timure and one in Ghattakhola of Rasuwa were completely destroyed. Additionally, technical teams are actively working in the field to restore towers in Trishuli and Bidur of Nuwakot as well as a tower in Tirus, Rasuwa.

Meanwhile, Ncell has been offering free voice, data, and SMS services to over 300,000 customers in flood-affected areas since September 10. This service targets customers in Rasuwa, Nuwakot, Dhading, Gorkha, and Chitwan.

The free services were initially enabled for customers who had been active in the affected areas seven days prior to the onset of floods. Originally provided for three days, the service period was later extended by seven more days.

According to Ncell, the value of free voice, data, and SMS services provided up to Sunday has surpassed NPR 10 million. The usage of free services has been increasing as mobile towers have gradually been restored.

To ensure continuous connectivity during the crisis, Ncell reactivated SIM services for over 25,000 customers whose services had been suspended due to balance top-up issues or for whom both outgoing and incoming services had been deactivated. These customers have also benefitted from the free services.

Furthermore, in coordination with the Government of Nepal and Nepal Telecommunications Authority, Ncell has been disseminating public awareness call tones and SMS messages.

The company has urged the public to verify the authenticity of accounts, QR codes, and links before donating to the Prime Minister’s Disaster Relief Fund. It has also appealed to avoid sharing or to promptly remove devastating and distressing photos or videos related to the disaster on social media and online platforms.