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Kerung border point damaged by floods. File Photo

Disruptions to all three major trade routes with China ahead of Dashain and Tihar have severely impacted imports targeted for the festive season, following extensive damage to the Rasuwagadhi border crossing from the floods on August 26.

Imports of goods from China have been severely affected after the flash flood on August 26 destroyed the Rasuwagadhi border crossing, which serves as a short route to Kathmandu. Citing disaster risks, the Chinese government had already closed the nearby Tatopani border crossing. Although imports were initiated through the Korala border crossing in Mustang as an alternative to both, continuous rainfall, landslides, and snowfall after September 24 blocked the road, creating further complications. With all three primary commercial border crossings with China affected on the eve of Dashain and Tihar, the import of festival-targeted goods has been hit hard.

The complete closure of these border points raises the risk of reduced market supplies and surging inflation. “With no route available for imports, the primary issue lies in the supply chain itself,” says Ramhari Karki, President of the Nepal Trans Himalaya Border Commerce Association. “Goods won’t be available, and inflation looks set to rise even further.”

According to Ang Dorjee Sherpa, Secretary of the Commerce Association, clothing and apparel form a major portion of the goods consumers buy heavily during Dashain and Tihar. He noted that halted imports will make it difficult to bring such items to the market. He added that the failure to import goods in a timely manner leaves consumers without supplies and creates a situation where prices escalate.

Traders who took bank loans to import Dashain-Tihar goods from China are deeply concerned about being unable to bring in and sell their inventory in time. Nepal imports a wide range of products from China, ranging from textile raw materials to ready-made garments, footwear, bags, electrical appliances, and vehicles. Fresh produce such as apples, mangoes, walnuts, and garlic are also imported from China.

According to data from the Department of Customs, Nepal imported goods worth over Rs 76.40 billion rupees from China in the first two months of the current fiscal year 2026/27. Imports suffered after roads and bridges leading to all three major border points sustained severe damage.

Rasuwa damage drives up freight costs

Traders report that transportation expenses have surged for goods diverted through Korala and Kolkata following the events in Rasuwa. Sherpa stated that drivers, laborers, and traders involved in transit went missing along with containers and cargo after being caught in the flood.

He mentioned that around 450 loaded containers were lost in the Rasuwa flood, resulting in damage to goods worth approximately Rs 3.5 billion rupees. He added that reopening the Tatopani border point would bring immense relief to the business community. “We hear efforts are underway to reopen Tatopani; if the Chinese government responds positively, it would provide great relief,” says Sherpa. “It is fast, short, and simple, and plenty of vehicles are available for transport.”

Diplomatic initiatives to reopen Tatopani

The government stated that it has initiated diplomatic efforts to reopen the nearby Tatopani border crossing for immediate relief. Jitendra Basnet, Joint Secretary and Spokesperson for the Ministry of Industry, Commerce and Supplies, stated that with commercial border points with China disrupted, efforts are being pursued through the Ministry of Foreign Affairs.

On September 28, following a proposal from the Chinese side, an inspection team led by Ram Kaji Khadka, Joint Secretary at the Ministry of Foreign Affairs—along with officials from the Chinese Embassy in Nepal, the Department of Customs, and the Department of Roads—conducted an on-site assessment of the Tatopani road section in Sindhupalchok.

According to Krishna Prasad Sharma, Assistant Chief District Officer of Sindhupalchok District Administration Office, the road conditions and customs clearance setup are suitable for operations. He mentioned that strong efforts are underway to reopen Tatopani as the festive season approaches. “We went on a joint monitoring visit, and the road condition is good,” he says. “Our demand is that Tatopani must be opened, and we hope it will reopen.”

Chinese interest

Meanwhile, the Chinese government has reportedly shown interest in the Korala border point as well. According to a high-ranking official at the Ministry of Foreign Affairs, the Chinese side is emphasizing the development of the Korala crossing as a permanent border point. The official noted that preparations are underway, per the Chinese side’s request, to inspect the road conditions in the Korala region in the presence of representatives from both countries.

Ministry Spokesperson Basnet stated that efforts are ongoing to operationalize the border points and ease imports targeted for upcoming festivals like Dashain and Tihar. However, Ek Narayan Bhandari, Assistant Chief District Officer of Mustang, stated that floods after September 24 washed away roads and bridges in at least five locations along the import route from the Korala crossing.

Consequently, he noted that it is currently impossible to transport goods imported through the Korala border to their final destinations immediately. He added that a joint team, including representatives from the Chinese side, is scheduled to inspect the Korala border point on October 4.

Why Korala is not a seamless option

According to Karki, President of the Nepal Trans Himalaya Border Commerce Association, even if the Korala border point—disrupted by rains after September 24—becomes operational within 9 to 10 days, transporting goods to Kathmandu takes a much longer route compared to Rasuwa and Tatopani. Freight costs for bringing a single container of goods to Kathmandu via Korala range between Rs 400,000 to 500,000, whereas the same volume of goods reaches Kathmandu via Rasuwa for around Rs 60,000.

He stated that at a time when fuel supply disruptions following the West Asia war have made freight expenses more expensive than before, rerouting goods from Rasuwa through Korala will further inflate costs. Ultimately, he noted, this burden will fall on consumers. Karki emphasizes that Korala cannot serve as a long-term alternative, as snowfall and frost during winter can disrupt transit.

Consumer rights activist Madhav Timilsina stated that the government must take responsible diplomatic initiatives with China on behalf of citizens and consumers. According to him, current import bottlenecks will trigger product shortages alongside rising prices. “In a crisis where goods are unavailable and inflation is climbing, the Government of Nepal should state openly that we rely on China and request their assistance in opening the border points to facilitate imports,” he says.

He added that since Rasuwagadhi cannot return to operation immediately, the government must gain China’s confidence to open the Tatopani border point. Positioned between two major nations, Nepal must prioritize maintaining friendly relations on both sides to operationalize commercial border crossings, he stated.

Need for alternative trade routes

Paras Kharel, Executive Director of South Asia Watch on Trade, Economics and Environment (SAWTEE) in Kathmandu and an expert in international trade and applied microeconomics, stated that in addition to immediately operationalizing the Tatopani border point, alternative trade routes must be developed for the long term.

He advised making the push to open Tatopani meaningful for immediate needs. “If a route cannot run due to landslides and floods, there is little choice; but if it is stalled due to policy reasons, the government must resume operations through internal and bilateral diplomatic initiatives,” he says.

Just as the reliance on Rasuwagadhi increased when Tatopani closed after the earthquake, utilizing Tatopani now will ease trade, according to him. “Since snowfall poses problems for Korala, the only year-round operational border points are Rasuwagadhi and Tatopani,” he says. “Once both are operationalized, a mechanism should be established to use them permanently.”

He also stresses prioritizing the Koshi Corridor under construction as a national pride project connecting Khandbari in Sankhuwasabha with the Kimathanka border point, alongside the proposed Tokha-Chhare tunnel connecting to the Rasuwagadhi route. Since Kimathanka sits at a lower altitude than Mustang’s Korala and Humla’s Hilsa, construction speed needs to be accelerated, he notes.

The BRI Cooperation Framework signed between Nepal and China on December 4, 2024, includes the Tokha-Chhare tunnel, the Kimathanka-Khandbari road, the Kimathanka bridge, and an integrated check post as potential joint implementation projects.

Kharel suggests that with trade routes devastated, Nepal should seek technical and financial cooperation with China to develop these alternative routes. The BRI Framework mentions that financial arrangements and development modalities for projects will be negotiated individually based on each specific project. Furthermore, he recommends relocating the Rasuwagadhi border point to a safer location after completing comprehensive disaster risk assessments.

Work underway on the Rasuwagadhi access road

Umesh Bindu Shrestha, Joint Secretary and Spokesperson for the Ministry of Infrastructure Development, indicated that because power projects under Chinese contract agreements are located along the stretch from Rasuwagadhi to Syaphrubesi, the Chinese government is taking steps to restore road connectivity. Meanwhile, work is underway on the Nepale government’s end to restore the road from Syaphrubesi to Betrawati. “Although an exact opening timeframe cannot be guaranteed, work and efforts are actively ongoing to reopen it,” says Shrestha.

Previously, imports had to be rerouted through Korala when the Rasuwagadhi point was blocked. On July 8, 2025, a sudden glacial flood in Rasuwa damaged the Nepal-China Miteri Bridge, the Syaphrubesi-Rasuwagadhi road section, a large portion of the Rasuwagadhi dry port, and three hydroelectric projects in the area.

Flooding in the Bhote Koshi caused massive destruction when a glacial lake at the Pyurepu Glacier, located about 35 kilometers above Rasuwagadhi in the Tibetan region, experienced a sudden outburst release.