KATHMANDU: The Indian border market of Raxaul, usually bustling throughout the year, has turned noticeably quiet following tighter customs enforcement by the Nepali government.
The decline in Nepali shoppers crossing the border has significantly affected trade in Raxaul, which has long served as a key shopping hub for residents of Birgunj and nearby areas including Simara, Hetauda and Chitwan.
Local traders in Birgunj, however, say the stricter checks have had a positive impact on domestic markets. With fewer consumers traveling across the border for shopping, footfall in Birgunj has gradually increased.
Jay Prakash Khetan, proprietor of JP Enterprises in Adarshanagar, said his clothing business has seen around a 30 percent rise in sales since the enforcement tightened. “Earlier, we would spend most of the day waiting for customers. Now, there is a noticeable improvement in business,” he said.
Similarly, grocery shop owner Rishi Keshari from Minabazar reported a 25 percent increase in sales, adding that business could grow by up to 50 percent if illegal cross-border trade is further controlled.
The shift in consumer activity has also been influenced by recent road expansion works in Birgunj. Following the demolition of encroached structures along the main road by the Hetauda Road Division on Baisakh 6, commercial activity has moved towards areas like Adarshanagar and Link Road. Some displaced traders have continued selling goods amid the debris, offering discounts to clear stock.
According to the Birgunj Chamber of Commerce and Industry, around 1,000 traders have been affected by the road expansion, putting nearly 9,000 jobs at risk.
Customs officials say the stricter measures are helping curb informal imports and illegal trade. Uday Singh Bista, information officer at the Birgunj Customs Office, noted that unauthorized imports have decreased to some extent, making it easier to control smuggling.
Authorities also believe the crackdown has contributed to reducing illegal financial transactions such as hundi and limiting the inflow of narcotics through border areas.
However, business leaders have raised concerns over the practicality of the rule requiring customs duties on goods worth more than Rs 100, arguing that it creates inconvenience for residents in border areas.
Security officials from the Armed Police Force say efforts are ongoing to balance enforcement with practical challenges faced by locals.
Data from the Birgunj Customs Office shows that goods worth Rs 694.05 billion were imported through the checkpoint in the first nine months of the current fiscal year, generating Rs 177.66 billion in revenue. During the same period, exports worth Rs 79.54 billion were recorded through the border point.
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