Nepal's Dashain and Tihar supply chain is under pressure after floods, landslides and damaged roads disrupted trade through its three main land crossings with China. The Rasuwagadhi- Kerung, Tatopani-Zhangmu and Korala routes have all been affected. Cargo is stranded, imports are delayed and transport costs have risen, just as businesses prepare for he festival season.
Traders have warned that late shipments and higher freight costs could cause shortages of some goods and push up some retail prices. The effect is still uncertain. Existing stock and weak demand may soften the blow, and the impact will vary by product. In late September, a trade association representative said weak demand and stock on hand could limit the overall effect, though particular goods could become more expensive.
The Rasuwagadhi- Kerung crossing was badly damaged by the flood of August 26, which hit the crossing and its infrastructure. Cargo was then diverted to Korala in Mustang. But rain, landslides and road erosion along the Beni-Jomsom-Korala route disrupted that alternative as well. The Department of Roads said on September 30 that two-way traffic had resumed on the Ghasa-Korala section after landslides were cleared.
Other sections between Mustang and Beni stayed damaged, so reopening one stretch did not restore the whole route. Korala also had limited customs and quarantine facilities, which complicates the movement of food and perishable goods.
At Tatopani, Infrastructure Development Minister Sunil Lamsal said on October 5 that the Nepali side's road had been restored. Talks with China on resuming were still going on. The government says it is in contact with Chinese authorities about reopening Tatopani and Rasuwagadhi.
Nepal imported goods worth more than Rs 76.4 billion from China in the first two months of fiscal year 2026/27, according to customs figures. China accounts for about 14 percent of Nepal’s total foreign trade.
On September 30, Parshuram Dahal, president of the RB Complex Business Association, said only about 20 to 30 percent of the goods ordered for Dashain had reached Kathmandu. The same report said more than 150 cargo vehicles and containers were stranded at the Korala customs point, and about 300 to 400 electric vehicles were stuck in the border area.
The delays could affect clothing, footwear, bags, phones, computers and other electronics, electric vehicles and parts, machinery and industrial raw materials, along with some food items.
Traders say longer routes and extra freight could be passed on to buyers, especially for products that depend heavily on Chinese imports. Higher prices are not certain for every product. Some businesses may absorb the costs, use stock they already have or delay buying until the routes are reliable.
The outcome depends on how long the disruption lasts, the cost of alternative transport, how much stock is already in Nepal and how strong festival demand is. Customs offices, traders and market monitors will need to say which goods are truly short and whether price rises come from transport costs, thin stock or something else.
