With Dashain bearing down on Nepalis, festival purchases are happening at a frenzied pace, and market prices are rising equally fast.

The spike in demand for clothes, food and other household items habitually leads to price gouging as traders know that, at this time of the year, people buy first and ask questions later.

Runaway price rises have dampened the festive spirit as householders are being forced to stretch every rupee.

Inflation has come in various forms. The appreciation of the United States dollar and costlier fuel have made imported goods more expensive. At the same time, the economy is still trying to shake out of its Covid stupor.

Increasing price pressure remains the most immediate threat to the market as it has squeezed people's real incomes.

The Post spoke to people from different walks of life about the price rise as they are being forced to shell out more money.

Yamuna Oli, a bachelor student at Shanker Dev Campus, says students from out of the valley who live and study in Kathmandu have a fixed budget sent by their parents back home. But market prices are increasing every passing day.

“It’s difficult to manage my expenses. I need to travel to my hometown in Dang for Dashain, but the bus fare, which was Rs1,000 before the pandemic, has almost doubled now. Besides, there are not many job opportunities amid the soaring cost of living."

Experts say that lack of jobs due to political instability and growing corruption have driven thousands of youths to seek their future overseas.

According to the Ministry of Education, 110,217 students obtained No Objection Certificates (NOC) for foreign study in the last fiscal year ended July 16, a fourfold jump in 10 years.

The central bank said that Nepalis spent Rs144.46 billion on foreign travel, including Rs100.42 billion for education, in the last fiscal year.

“I have planned to go abroad right after completing my Bachelor's degree,” says Oli.

For trekking guide Gaurav Pratap Rana, his seasonal earning is not enough to sustain himself throughout the year.

“During the last couple of months, I did not get any clients for trekking as it was the off season. However, with the trekking season approaching amid the festivals, I have started receiving bookings for trekkings.”

To date, he has fixed four trips with foreign clients. Like in previous years, this year he has not got enquiries from domestic travellers. Rana says that the economic slowdown seems to be affecting the plans of domestic tourists as well.

A strong domestic tourism market is crucial for a resilient tourism industry, and after the Covid 19 pandemic, the sector has realised how important domestic tourists are for its survival.

The festival season is the perfect time to trek in Nepal due to the availability of longer holidays and bonuses offered by the companies.

But as people's incomes have dropped, tour agencies say that domestic visitors too have cut short their holidays. “The economy has slowed down. It looks like Nepalis don’t have money to travel this holiday season,” says Rana.

A series of festivals begins next week—Dashain, Tihar and Chhath. These major celebrations prompt people to buy fruits in large quantities.

Sabitri Karki, proprietor of SK Fruits and Juice Centre at Ratopul is feeling the bite of the economic slowdown this festive season. “Like every other business in the country, footfall at my shop too has dropped sharply.”

Although demand for fruits increases during the festivals, this year has been disappointing. “I am not very excited about the festival this year,” says Karki.

But she believes that redecorating the shop will help attract more customers.

Demand for flowers also swells as people decorate their vehicles and houses with colourful blossoms during Dashain and Tihar.

But Manica Pudasaini, proprietor of New Prakriti Nursery at Mid-Baneshwor says the economic slowdown has hit the flower business too.

After witnessing a sales boom during the Covid period as people stayed home and planted flowers in their rooms and terrace gardens, she says demand has suddenly dropped this year.

“Most of the nurseries are suffering due to the economic crisis,” says Pudasaini. “But we have been able to overcome the challenges. We have shifted to digital platforms and we are going to the customers' doorsteps.”

Tihar is the busiest time of the year for the country’s floriculture industry. Around 40 percent of the year's total business happens during the period.

Florists are not very optimistic about sales as the flowers have already bloomed, and by the time Tihar comes around, there will be a shortage.

Auto sales are the biggest sales happening during the autumn festival season. Nepal's annual automobile show was back after a four-year Covid break on September 10. Sales, however, were not encouraging.

Dhruba Thapa, president of the NADA Automobile Dealer Association, says that the economy has been going downhill for the last couple of years. Although the situation this year has improved a bit, the auto sector still has not recovered.

“But the auto market is on the recovery path,” says Thapa. “There is not much excitement because of the festival like there used to be before the Covid pandemic. I am also cutting my expenses this Dashain as the economic slowdown has hurt people from all walks of life, including me.”