News Summary
- The flood of the Bhote Koshi River at the Rasuwa Gadhi customs yard swept away hundreds of containers, cargo trucks, and infrastructure, causing severe human and economic losses.
- Following the blockage of Rasuwa Gadhi and Tatopani border points, traders have turned to Mustang’s Korala border as an alternative, though transport costs and delivery times are expected to rise.
- With upcoming festivals, imports have been disrupted, triggering concerns over shortages and price increases in essential goods; business and economic experts urge the government to immediately arrange rescue, rehabilitation, and relief support.
Kathmandu, September 27 — Nepal’s major festivals including Teej, Dashain, Tihar, and Chhath are approaching fast. In major commercial hubs of Kathmandu such as New Road, Bhotahity, and Ranjana Lane, traders wear expressions of deep disappointment.
The cause is an unexpected natural calamity at the key trade border with China, Rasuwa Gadhi.
Hundreds of containers carrying billions worth of goods such as clothing, footwear, electrical appliances, garlic, onions, ginger, and fruits ordered on loans for the festive season were swept away by the Bhote Koshi river flood.
This devastating flood completely destroyed the Rasuwa Gadhi customs yard. In addition, the Tatopani border in Sindhupalchok district has been closed for over a month due to landslides damaging the road section, halting transportation.
Customs staff, agents, and drivers who went to bring goods from Rasuwa Gadhi are out of contact, creating a serious human tragedy as well as financial loss.
Not only physical infrastructure but also major human losses have occurred. The dry port and customs yard in Rasuwa Gadhi are currently in ruins. Hundreds of parked cargo containers and expensive electric vehicles have been engulfed by floodwaters.
Business owners are now facing a severe mental and financial crisis.
Jayant Kumar Agrawal, General Secretary of the Nepal Overseas Exporters Association, said the situation at the border without infrastructure is extremely distressing from a human perspective.
According to General Secretary Agrawal, “There is currently no possibility of reopening Rasuwa and Tatopani border points. The area is infrastructure-less and completely destroyed. There is no confirmation on the safety of 14 customs employees. Many containers and empty trucks have been swept away by the flood.”
He warned that traders have lost the ability to make rational decisions and urged the state to immediately focus on rescue and relief efforts.
Parshuram Dahal, President of the RB Complex Traders Association based in New Road, also confirmed disruptions in supply and communication.
“Drivers and helpers’ phones are switched off. It’s very difficult to ascertain their condition,” said Dahal. “Although festival-related goods had reached customs, the flood and landslides destroyed many items. CCTV footage shows the warehouse and surrounding areas completely damaged, indicating significant economic losses.”
Although the government is attempting to reopen Tatopani border, the situation remains bleak. Nepal has cleared landslides and constructed a temporary road, but the Chinese side has not approved the container schedule.
According to Dipendra Prakash Giri, Chief Customs Officer of the Tatopani customs office, “China has refused to allow container release as per prior agreements. Due to the additional two to four days expected for road construction, vehicles can come into Nepal but are not allowed to return, effectively halting the border.”
Earlier, direct meetings allowed communication, but now interactions occur only via messages between both sides.
Chinese customs workers were relocated after landslides damaged the Liping area and surroundings on the Chinese side.
Increased Pressure on Mustang’s Korala Border
With issues at Tatopani and Rasuwa Gadhi border points, the Customs Department advised traders to use Mustang’s Korala border as an alternative.
Korala, located on flat terrain, is less prone to landslides, but traders consider this only as a last resort. Unlike Rasuwa and Tatopani, Korala lacks proper customs infrastructure, wide roads, or suitable arrangements for heavy cargo trucks.
Vidur Chudal, Chief Customs Officer of Mustang Customs Office, reported regular movement of cargo vehicles through Korala. Although there is no advanced infrastructure on the Chinese side, available resources and facilities are operational.
“We are working with basic infrastructure about 14 kilometers inside the border. There are no facilities similar to those on the Chinese side, but the border is operational and vehicles are arriving,” he said.
Attraction to electric vehicle imports is growing; recently, 100 BYD units and 63 vehicles from Foton company have been imported through this border. Vehicles from other companies are also arriving.
Ready-made clothes, shoes, bags, and fabric rolls are being imported through Korala. With increased pressure at Rasuwa, traders have started prioritizing Korala.
“Previously, one to two containers arrived daily; now it’s eight to ten,” Chudal said.
However, the lack of quarantine facilities poses problems for importing perishable items such as food, fruits, and vegetables.
“Until quarantine facilities are established, such goods cannot be imported. So, currently, use of Tatopani or other borders remains necessary,” he added. Mustang Customs has 18 sanctioned posts but currently only 10 employees are present.
Parshuram Dahal mentioned that importing goods through Korala is “better than not having any option.”
He noted, “While transport costs and times increase via this route, there’s no alternative given the current circumstances.”
Ramchandra Parajuli, General Secretary of the Nepal Himalaya Cross Border Commerce Association, said the road from Rasuwa to Kerung in China is completely destroyed for about 50-60 kilometers.
“The physical condition of Rasuwa border is damaged; national budget and active cooperation from the Chinese side are needed to rebuild road infrastructure.”
With uncertainties at Rasuwa border, changing the route to Korala will significantly increase transportation costs and delivery time. “It takes nearly two days to travel from Korala to Kathmandu. Route alteration will inflate transport expenses, potentially doubling prices in the market,” he explained.
With the blockade of Nepal’s border crossings, imports via sea through Kolkata and other routes are options but these are expensive, complicated, and time-consuming, making them unfeasible for the festival market.
Jayant Agrawal noted, “Geopolitical issues are affecting maritime routes. Goods from Kolkata take a long time and customs fees have risen.”
He added, “From a Chinese port to Kolkata takes about 45 days, plus 20-25 days to reach Nepal. Importing via maritime routes incurs high bank interest costs and delays, making it impractical for the winter season.”
This disaster has devastated Nepal’s small and medium-sized business community.
Thousands of traders who ordered goods on personal loans or letters of credit are at risk of losing capital. Parajuli said, “The flood damaged not only products and infrastructure but also capital. Many business owners may have to cease operations due to depleted funds.”
Securing new capital is difficult, and damaged imports may cause severe market shortages. Traders have requested Chinese authorities for assistance in rerouting supplies by air or sea.
This is not the first disaster to affect borders on the Chinese side. The 2014 Jure landslide, the 2015 mega earthquake, and various annual monsoon disasters have all impacted trade routes.
On August 30, 2017, the Chinese government officially declared Rasuwa Gadhi-Kerung as an international border point, yet the connecting roads remain similar in condition to rural local roads.
Every year, monsoon floods and landslides block the road during the months of August-September, halting goods worth billions and causing massive losses in a short time.
In the fiscal year 2083/84, goods worth 3.174 billion Nepalese rupees were imported from China in just the first month of Shrawan. The previous fiscal year saw imports exceeding 40 billion rupees.
Trade and commerce expert Ravishankar Sainju urged the government for special initiatives to prevent shortages during the festivals.
He pointed out that while Korala can be an alternative, transportation costs there could be significantly higher.
“Importing via Korala is an option but costs nearly double compared to Kerung or Tatopani,” he said.
“Delivery costs from Korala are higher than from Rasuwa, which will ultimately burden consumers.”
Initial estimates indicate the Bhote Koshi flood washed away between 200 to 300 containers of goods at Rasuwa Gadhi, causing losses worth billions and dampening trader morale.
“Container drivers and traders are also out of contact or missing. Under such circumstances, it is difficult to encourage traders to switch to alternate border points.”
With the blockade of Rasuwa Gadhi, Korala or sea/air routes may be the only options, but such disruptions during festival times are unfortunate.
Sainju called it an “emergency” situation requiring urgent government measures. “During festivals, coordination is essential to avoid artificial shortages and price hikes.”
He emphasized that the state should provide relief to cover extra costs via alternate routes to ease the burden on consumers.
Economist Dr. Dilliraj Khanal described the disaster as a major setback for the country’s overall development.
“Besides human loss, billions worth of damage to roads, bridges, and electricity production have severely affected the economy.”
Khanal remarked, “The Rasuwa Gadhi disaster has also impacted foreign trade and businessmen morale.”
Since imports through India and other alternate routes might be costly, the government should consider subsidies or grants to alleviate the impact.
He called for coordinated, comprehensive, and timely plans involving all political parties, the private sector, and donor agencies for post-disaster rehabilitation.
“Disaster management needs to be executed at a war footing. The 2.5 billion rupees promised by the World Bank and assistance from countries like India and China must be utilized effectively.”
Khanal urged the government to implement effective disaster management systems immediately to control shortages and price hikes in the market.
When the country’s main supply chain is disrupted during festivals, the effects will certainly reach the consumers’ kitchens and households. Price increases will cause a “chain effect,” impacting daily expenses of low- and middle-income families and the overall economy.
