Floods disrupt Nepal-China trade route, raise supply concerns ahead of festival season

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 festival season, The Rising Nepal reported on Wednesday.

The floods damaged border infrastructure and connecting roads, disrupting the movement of cargo trucks carrying Chinese imports. Traders have been forced to seek alternative routes just as demand is expected to rise ahead of Dashain, Tihar and Chhath.

Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association, said more than 500-600 Chinese containers carrying goods for the festival season had been travelling towards Kerung, with many stranded after the Rasuwagadhi border was damaged.

“Importing goods from China to meet the immediate demand has become a challenge,” Karki said, warning that the disruption could affect supplies and push up transportation costs.

More than 200 Nepali containers were also swept away by the floods, he said, putting traders’ losses at at least NPR 2 billion.

Rasuwagadhi is one of Nepal’s major trading points with China and handles a significant volume of Chinese imports. The Tatopani border, another key trade route, is also not operating normally, leaving traders increasingly dependent on the Korala crossing in Mustang.

Around 176 cargo trucks have already been diverted towards Korala, Karki said.

However, traders say Korala cannot serve as a practical year-round replacement for Rasuwagadhi because of its difficult terrain, high altitude and longer travel times.

“Using the Korala border is our compulsion, not an alternative,” Karki said.

Transport costs rise

The diversion is expected to increase both transportation times and import costs.

Karki said transporting cargo from China to Nepal and back through the Korala route could take at least 10-12 days, compared with the shorter routes previously used.

Transportation from the Korala border to Kathmandu currently costs around NPR 450,000-500,000 per cargo vehicle, representing a 10-15 per cent increase, he said.

The disruption comes at a critical time for Nepal’s retailers. Chinese imports account for a substantial share of consumer goods sold during the festival season, including garments, footwear, electronics, electrical goods, household products, decorations and toys.

Traders are particularly concerned that goods already ordered from China may not reach the Nepali market in time.

“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.

The trade disruption is another economic consequence of the devastating flash floods, which have killed more than 1,350 people in Nepal and left more than 5,000 missing as search and rescue operations continue.