Border Tightening Boosts Mahendranagar Market Activity

Mahendranagar. With the security apparatus tightening restrictions on goods imported from India along the Nepal-India border in western Nepal, there has been an increase in shopping activity in the Mahendranagar market of Kanchanpur. The Gadda Chowki border crossing has tightened customs checks on goods imported from India, reducing the flow of people going to the bordering Indian market of Banbasa for daily necessities and other goods. Consequently, while the Banbasa market, which used to see daily shopping activity, is now deserted, shops in Nepal have become bustling. The increased activity in the Mahendranagar market is attributed to the strict customs checks and vigilance by the Armed Police Force and Nepal Police in the Gadda Chowki and surrounding areas, requiring customs duty on goods exceeding Rs 100. Indra Bahadur Bam, a businessman from Mahendranagar, stated that the border customs tightening has led to increased shopping in the Mahendranagar market on the Nepali side. He noted that while people previously went across the border believing goods were cheaper, they are now realizing this is not always the case. "Even if the goods are cheaper, when you factor in the cost of fuel for the motorcycle to go there, it's almost the same," he said. "If customs are strict at the border, people will be more attracted to doing business in Nepal." He mentioned that the practice of going to the Indian market even for ordinary household items was common. Despite increased market activity compared to the past, he believes that security agencies and the Chamber of Commerce should play a stronger role in customs enforcement. He also noted that recently, people trying to bring in goods for puja rituals have started reappearing. The bordering Indian market of Banbasa has historically depended on Nepali consumers. Indian traders say that their business has been affected by the strict customs enforcement in Nepal. "During the summer, people from Nepal used to come here daily to buy fans, refrigerators, and coolers," said an electrical goods seller from Banbasa. "With the border tightening, many here are facing a slump in business. Our market was largely dependent on locals from Nepal. But now they have stopped coming altogether. Even if they come, they buy small items and leave. They say that since customs duty is levied when bringing goods into Nepal, the final price will be almost the same." He emphasized that since people have been crossing the Nepal-India border for shopping for decades, the environment should be facilitated, even if it means paying customs duties. Prem Prakash Sigdel, Superintendent of Armed Police Force, 35 No. Gan Shaileshwari in Kanchanpur, stated that while facilitation would be provided for bringing in fertilizer for farmers, others must bring goods by declaring them at customs. "Customs declarations have increased due to border tightening," he said. "The movement of people to and from the bordering market has also decreased in the customs area." He added that the strict enforcement of the previous rule, which required customs duty on goods exceeding Rs 100 brought in by consumers from India, has led to increased commercial activity in the Nepali market. The practice of carrying goods by bicycle from Banbasa to Mahendranagar and surrounding markets has also stopped. "The past practice of bringing goods for weddings, ceremonies, pujas, and household purposes without customs declaration should not continue," he said. "Commercial calculations cannot be considered practical." Goods imported through the Gadda Chowki customs include daily necessities, clothing, and electrical items. Madhav Joshi, General Secretary of the Nepal-India Friendship Association, said that although the border tightening may have caused some inconvenience to citizens temporarily, it has benefited the state overall. "It is natural for trade to increase on the Nepali side and be affected on the Indian side due to customs tightening," Joshi said. "This tightening has increased the use of goods produced in Nepal. It is good that domestic products are finding markets and sales are increasing." He stressed that customs tightening should be continued by regulatory bodies as it also increases employment in the country. "Even during the Corona pandemic, people survived by using Nepali goods," he said. "Although the revenue from customs may be affected by reduced imports from India, the state's overall revenue will not decrease. Smuggling of daily necessities under the guise of bringing them home, which was happening in the past, has now been controlled." Dinesh Malla, President of the Kanchanpur Chamber of Commerce and Industry, stated that Nepali citizens returning from work in India should not be harassed in the name of border tightening. "Our brothers returning from work in India also have belongings; they should not suffer in the name of customs declaration," said President Malla. "There is a need to tighten controls on carrying goods as well."