Indian border market Raxaul falls silent

By Dipak Prasad Gautam,Birgunj (Parsa), May 7: The Indian border town of Raxaul, heavily dependent on Nepali customers, has witnessed a significant economic downturn after the government began strictly enforcing customs regulations.

Since April 15, the government has mandated that goods worth more than Rs. 100 brought from across the border are subject to customs duty. 

As a result, the number of Nepali shoppers visiting Raxaul has dropped sharply, severely affecting the local economy.

Previously, consumers from Birgunj, Jitpur-Simara, Pathlaiya, Nijgadh, Hetauda, Narayangadh, Pokhara and even Kathmandu travelled to Raxaul for shopping. 

However, with stricter border controls, the once-bustling marketplace has turned noticeably quiet. 

Nepali customers typically purchased food items, clothing, electronic goods, agricultural supplies, fertilisers and seeds from the market.

According to Mahesh Agrawal, Chairman of the Border Awareness Forum and a local trader in Raxaul, business transactions in the market have declined by nearly 80 per cent following tighter controls. 

He noted that commercial activities have almost come to a standstill due to the sharp decline in Nepali customers. Agrawal also alleged that while ordinary citizens are being harassed in the name of customs duties, large-scale illegal traders are not being effectively controlled. 

He urged authorities to ensure proper monitoring, adopt balanced policies, and take concrete steps to prevent misuse of the open border.

Despite stricter checks at major border points, some traders claim that smuggling continues through other open areas in Parsa, often facilitated by carriers.

In recent times, the increased enforcement has largely curtailed informal cross-border trade. 

Hari Gautam, President of the Birgunj Chamber of Commerce and Industry, emphasised the need to ensure consumers’ access to affordable goods. 

He suggested that either customs duties or VAT should be reduced so that price differences between Nepal and India are minimised.

Krishna Kumar Sah ‘Laddu’, proprietor of Sachin and Bishal Grocery Store in Mina Bazaar, Birgunj, viewed the stricter customs enforcement positively. 

He said it has benefited Nepali traders and led to a slight increase in sales.

Similarly, Prem Chandra Goyal, Secretary of the Birgunj Chamber of Commerce and Industry, stated that the government should formulate policies to ensure goods are made available to citizens at reasonable prices.

Kishan Agrawal, owner of Narayani Machinery Traders in Pangalli near Ghantaghar, said that the tightened border controls have somewhat boosted business for Nepali traders.

Armed Police Force Deputy Superintendent Bikash Adhikari, chief of the Border Security Unit under APF Battalion No. 13, stated that the rule requiring customs duty on goods exceeding Rs. 100 has not yet been fully enforced at Birgunj Customs. 

He added that facilitation is being provided for goods brought for household use or for social functions such as weddings and Bratabandha ceremonies, while stricter checks are being applied to goods imported for commercial purposes.

Since April 19, Birgunj’s internal market has also been affected due to ongoing road expansion works involving bulldozers along the main road.