Clothing and footwear prices have surged by 25 to 30 percent for Dashain shoppers across Nepal, as goods worth an estimated Rs 5 billion remain stranded due to the closure of all three major land routes connecting Nepal and China. Despite increased footfall in major Kathmandu markets like New Baneshwor, New Road, Asan, and Bhrikutimandap, both traders and consumers report a lack of enthusiasm.
The price hike is primarily attributed to the disruption of northern border crossings and a doubling of transportation costs.
Border Closures and Stranded Goods
The current crisis began on Bhadra 10 (BS) (August 26, 2026), when a flood in the Trisuli River severely damaged infrastructure in Rasuwa District and the Kerung border complex on the Nepal-China border. This led to the closure of the Rasuwagadhi, Tatopani, and Korala crossings, Nepal’s three primary land routes to China.
The Tatopani border crossing has been closed by the Chinese side since Bhadra 14 (BS) (September 1, 2026), citing landslide risks, although Nepali officials claim no road issues. The Korala crossing in Mustang district was also obstructed from Ashoj 8 to 11 (BS) (September 24-27, 2026) due to floods and landslides damaging roads and bridges. These closures have left an estimated 700 to 1,000 containers of goods stranded on the Chinese side or en route.
Consumer and Merchant Impact
Consumers are struggling to afford new clothes for Dashain. Sita Ghimire from Shantinagar, shopping in New Baneshwor, complained that a pant and T-shirt set for her son, which cost Rs 1,500 last year, is now priced between Rs 2,200 and Rs 2,500. Similarly, Sumi Thapa noted that a pair of pants she bought for Rs 1,000 last year now costs Rs 1,400 even after bargaining.
Merchants are also facing difficulties. Gautam Sah, a clothing trader in New Baneshwor, reported a significant drop in customer traffic, with many inquiring about prices but leaving due to high costs. Binod Oli, another trader, stated that wholesale prices for kurta-suruwal sets, previously Rs 1,500-1,700, have now risen to Rs 2,200-2,500. Mukesh Bishwakarma, a shoe seller, and Archana, another New Baneshwor trader, echoed similar concerns about increased prices and delayed new stock.
According to Nepal Rastra Bank, the central bank, the annual point-to-point consumer inflation was 5.96 percent in Shrawan 2083 (BS) (July/August 2026). Within this, the price index for clothing and footwear under the non-food and services group increased by 5.52 percent. Madhesh Province recorded the highest annual point-to-point consumer inflation at 6.94 percent.
Diplomatic Efforts and Market Monitoring
Infrastructure Development Minister Sunil Lamsal has met with Chinese Ambassador to Nepal Wang Maoming to initiate diplomatic efforts for the swift reopening of the Rasuwagadhi-Kerung, Tatopani, and Korala border crossings. The Road Department is working to reopen the Korala crossing.
Meanwhile, district administration offices in Udayapur and Doti districts, among others, have intensified market monitoring campaigns targeting Dashain, Tihar, and Chhath festivals. This includes penalizing shops and destroying expired goods, with the Department of Commerce, Supplies and Consumer Protection, Nepal’s consumer protection body, planning to deploy 13 monitoring teams in the Kathmandu Valley.
For background on the initial flood, see our earlier story: Bhote Koshi flood: Concerns for thousands missing, massive reconstruction challenge.
Uncertainties Remain
- The exact timeline for the full reconstruction and operation of the Rasuwagadhi crossing remains unclear.
- The precise reason for China’s continued closure of the Tatopani crossing, despite Nepal’s claims of no road issues, is not fully transparent.
- The exact magnitude of the increase in freight charges across all routes and goods is not fully quantified, with some reports suggesting even higher increases than double.
- Detailed information on the government’s long-term strategy to address recurring supply chain disruptions and their impact on prices is not available.
- Specific price data for all types of clothing nationwide, beyond the provided examples, is unavailable.
- Detailed impacts on other goods (e.g., electronics, other daily consumables) beyond clothing and fruits are not specifically detailed, though generally mentioned.
