Money
Political turmoil, curfew crush Dashain hopes for traders
With just days to go before Nepal’s biggest festival, businesses face broken supply chains, border disruptions, and consumer uncertainty as political unrest and violence stall festive sales.
Krishana Prasain
The ongoing political turmoil in Nepal has cast a shadow over businesses as a nationwide curfew continues amid government uncertainty ahead of the festive season.
Authorities have imposed curfew orders in Kathmandu Valley and several other parts of the country since Monday, after the Gen Z protests against corruption and lack of accountability spiralled into deadly violence, leaving 51 young demonstrators dead.
With just 10 days left for the start of Dashain, which begins with Ghatasthapana on September 22, traders say they have lost hope for a festive sales boost this year.
It has been nearly four days since Prime Minister KP Sharma Oli resigned, yet the vacuum and confusion over the next government has left businesses and consumers waiting for a return to normal life.
Traders said Dashain typically drives up sales of readymade garments, mobile phones, footwear and clothing accessories by around 50 percent. But this year, they see no such prospects.
“We were already struggling to import festival-targeted goods from the northern border due to the collapse of the Miteri Bridge at the Kerung point. Now, the political turmoil feels like salt in the wound,” said Saroj Kumar Shrestha, immediate past president of the National Business Association, New Road.
The Miteri Bridge was swept away by a flash flood originating from China in July, heavily damaging Nepali customs facilities. Traders have since relied on porters to move goods through the Tatopani route, which itself remains vulnerable to floods and landslides.
“It has been two months of difficulties importing goods smoothly from the northern border,” Shrestha said. “While the voice against corruption was necessary, its consequences have badly hurt the private sector, especially during the only time of the year when we look forward to business growth.”
He added that the curfew has disrupted the supply chain and broken the payment cycle, including loan repayments. Retailers from outside the valley, who usually arrive this time of year to stock goods, have stopped coming amid the uncertainty.
Mobile phone traders also said they expect zero growth this festive season.
“The July 8 and 9 protests had already dampened the festive mood. With so many young people killed and public and private infrastructure vandalised, customers are not in the right frame of mind for shopping,” said Bharat Bhattarai, president of the Nepal Mobile Traders Association.
Festive sales in the past were often fuelled by bonuses given to workers and staff, but this year, most workers themselves face uncertainty over salaries and bonuses, further weakening purchasing power.
“If curfew and restrictions continue, traders and customers at least need fixed hours when they can buy and sell goods under assured security,” Bhattarai said. “A way out has to be found soon.”
With Chinese imports disrupted, many traders shifted to bringing goods via Kolkata, India. But curfew orders have also blocked the smooth flow of goods within Nepal. Insiders said trucks carrying goods are stuck at the southern border waiting for customs clearance.
Dakshya Mani Gautam, immediate past president of the Nepal Shoes and Slippers Industry Traders Association, said businesses were already under strain due to policy uncertainty and high interest rates. Now the political collapse has deepened the crisis.
“We were expecting sales to double this Dashain, helped by a flexible monetary policy announced for this fiscal year. But now everything has collapsed, and we are left in the dark,” he said.
Dashain is traditionally the time traders rely on to recover annual sales through heavy investment and preparation. This year, however, the political unrest, curfews, and supply disruptions have left them with only gloom and uncertainty.