Birgunj, May 7: The Indian border town of Raxaul, long dependent on Nepali shoppers, has witnessed a sharp economic slowdown following stricter customs enforcement by the Nepal government.
Since April 15, authorities have required customs duty on goods worth more than Rs. 100 brought into Nepal from across the border. The move has significantly reduced the number of Nepali consumers travelling to Raxaul for shopping.
Previously, shoppers from Birgunj, Jitpur-Simara, Pathlaiya, Nijgadh, Hetauda, Narayangadh, Pokhara and even Kathmandu regularly visited the Indian market to purchase food items, clothing, electronics, agricultural supplies, fertilisers and seeds.
However, traders say the once-crowded marketplace has now become noticeably quiet.Mahesh Agrawal, Chairman of the Border Awareness Forum and a local businessman, claimed commercial activity in Raxaul has dropped by nearly 80 percent since tighter border controls were introduced. He alleged that ordinary citizens are facing difficulties in the name of customs enforcement, while large-scale illegal trade continues through informal channels.
Agrawal urged authorities to adopt balanced policies, strengthen monitoring, and prevent misuse of the open border system. Despite tighter inspections at major checkpoints, some traders claim smuggling still occurs through open border areas in Parsa District with the help of carriers.
Meanwhile, Nepali traders say the stricter enforcement has brought some positive impact on local businesses. Hari Gautam, President of the Birgunj Chamber of Commerce and Industry, stressed the need to ensure consumers continue to receive goods at affordable prices.
He suggested reducing customs duties or VAT to minimise price differences between Nepal and India. Similarly, local trader Krishna Kumar Sah, owner of Sachin and Bishal Grocery Store in Mina Bazaar, said the tighter border checks have slightly increased sales for Nepali businesses.
Prem Chandra Goyal, Secretary of the Birgunj Chamber of Commerce and Industry, also called on the government to formulate policies ensuring goods remain available at reasonable prices.
Likewise, Kishan Agrawal of Narayani Machinery Traders said stricter controls have provided some relief to Nepali traders competing with Indian markets.
However, Armed Police Force Deputy Superintendent Bikash Adhikari stated that the rule imposing customs duty on goods exceeding Rs. 100 has not yet been fully enforced at Birgunj Customs.
The tightening of border regulations has sparked debate between traders and consumers, with some viewing it as necessary to support domestic businesses, while others fear it could burden ordinary citizens and disrupt cross-border economic ties. #Nepal
