Since the Balen Shah-led government assumed power in Nepal, people on both sides of the India-Nepal border have been facing difficulties. Balen Shah’s administration has begun strictly enforcing a regulation requiring Nepali citizens to pay customs duties of up to 80% on goods purchased from India that exceed a value of 100 Nepali Rupees (equivalent to 63 Indian Rupees).
This regulation has become a major burden for the Nepali people. It is not, however, a new rule. The requirement to pay customs duties on goods has existed in Nepal for a long time; the only difference is that since Balen Shah’s government came to power, this rule is being enforced with unprecedented strictness.
Reduced Cross-Border Movement
As a direct consequence of this single regulation, the movement of Nepali citizens in border markets—spanning from Dharchula to Darjeeling—has significantly declined. It is not just the people of Nepal who are suffering; Indian traders, too, are incurring substantial losses due to this rule. In protest against this strict enforcement, demonstrations have erupted across various parts of Nepal.
Nepal’s opposition parties have termed this decision an “undeclared blockade.” Even a leader from Balen Shah’s own party—the ‘Rastriya Swatantra Party’—has described this move as impractical. The Nepali Congress has demanded the immediate withdrawal of this measure, labeling it as anti-people and insensitive. The party argues that this step will have a detrimental impact on low-income families residing in the border regions.
Indian Traders Also Affected
For decades, people from Nepal have been visiting India to purchase groceries, medicines, clothing, household utensils, mobile accessories, and wedding supplies. This cross-border trade has historically benefited Indian shopkeepers, porters, rickshaw pullers, and transporters alike. However, with customs duties ranging from 5% to 80% now being levied on these goods, the volume of cross-border movement and trade has plummeted.
Critics allege that while significant exemptions are granted under these regulations for air travel, there is very little leeway or flexibility allowed at land border crossings. At the border, Nepali security personnel are announcing via loudspeakers that no one—be they ordinary citizens, government employees, or NGO workers—will be granted any exemption from these regulations. Balen Shah’s administration argues that this strict enforcement is an attempt to curb revenue evasion and illegal imports.
Dharchula and Tanakpur in Uttarakhand; Sonouli-Belahiya, Rupaidiha-Nepalgunj, and Barhni-Krishnanagar in Uttar Pradesh; and Jogbani and Raxaul in Bihar—these are the areas where Nepali traders were once seen congregating in large numbers. Customers who previously used to purchase a month’s worth of groceries in a single trip now split their shopping into multiple smaller trips. They either purchase only essential items or return empty-handed without buying anything at all.
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