DEHRADUN: Tighter enforcement of customs duties by Nepal’s new administration on goods worth over Rs 100 is disrupting long-standing cross-border trade in Banbasa, triggering concern among traders and consumers on both sides of the border.
What was once an occasional administrative measure has now become a rigid reality.
Nepali border personnel are actively informing citizens through public announcements that importing even small quantities of daily essentials will now attract mandatory customs levies, or ‘bhansar’. While the policy was technically introduced by the previous government nearly two years ago, its sudden and rigorous implementation has caught small-scale traders in India off guard.
For decades, the economy of Uttarakhand’s border regions has been closely tied to Nepal. Towns like Banbasa serve as essential supply hubs for daily necessities for thousands of Nepali households. The imposition of this tax not only threatens the profit margins of Indian shopkeepers but also significantly raises the cost of living for Nepali consumers who rely on the affordability of these border markets.
“We have shared a relationship of roti-beti—bread and daughter—with Nepal for over sixty years,” said Bharat Bhandari, President of the Banbasa Trade Union.
“This trade isn’t just business; it is the lifeline for families on both sides of the border. When you tax basic, daily-use items, you aren’t just hurting Indian traders; you are placing an unfair burden on Nepali consumers who depend on these competitive prices for their survival.”
The impact is expected to be two-fold. Indian traders fear a sharp decline in footfall as the added tax makes their goods less attractive to Nepali buyers. At the same time, small Nepali retailers, who source their inventory from Indian border towns, are bracing for a logistical crisis. If the cost of goods rises too high due to these tariffs, both retailers and end-users may be forced to look elsewhere, potentially severing decades of economic integration.
The trading community has issued an appeal to Nepali authorities, requesting a specific exemption for daily consumption items. “We urge the government to consider the plight of the common man,” Bhandari added. “Exempting daily necessities would ensure that the cross-border community does not suffer due to these regulatory changes. We need policies that facilitate trade, not ones that stifle the small livelihoods that depend on it.”