Patna, April 21 (BiharTimes): A recent policy shift by Nepal's government under Prime Minister Balendra Shah has begun to significantly impact trade and daily life along Bihar's border districts, raising concerns among traders, labourers, and local residents.
In March this year, Shah assumed office with a decisive mandate. On April 15, his government introduced a new customs duty regime, imposing tariffs ranging from 5% to 80% on goods imported from India exceeding ₹100 in value. The move has sparked unease across the historically fluid Indo-Nepal border.
India and Nepal share an open border of approximately 1,751 km, passing through states including Uttarakhand, Uttar Pradesh, Bihar, and West Bengal. For decades, communities on both sides - especially in Bihar's border districts - have maintained deep economic and cultural ties, often described as the "Roti-Beti" relationship, symbolizing shared livelihoods and kinship.
However, recent developments suggest a shift in this long-standing dynamic.
In Bihar's Sitamarhi district, tensions flared near Indrawa in Sonbarsa block when Nepali security personnel reportedly stopped Indian vehicles entering Nepal, confiscated some, and allegedly behaved inappropriately with travelers. The situation escalated as people on the Indian side retaliated by halting vehicles coming from Nepal, leading to disruption of movement on both sides.
Personnel of the Sashastra Seema Bal (SSB) intervened, facilitating the release of seized vehicles and restoring normalcy. However, the incident has added to growing unease among border residents.
The new customs regime is already impacting cross-border trade, particularly in towns like Motihari, Raxaul, and Jogbani - key commercial hubs linked to Nepal.
Traders say the duty structure has sharply increased the cost of goods for Nepali buyers. For instance, goods worth ₹1,000 purchased in India now cost nearly ₹1,300 after adding customs duty and VAT in Nepal. As a result, footfall of Nepali customers in Indian markets has dropped significantly.
"This will bring our business to a standstill," said a trader from Motihari, noting that daily exports worth ₹50,000-₹60,000 have nearly halted. 'If duties go up to 80%, prices could double. Who will buy then?" he added.
Similar concerns are emerging in Araria district, particularly along the Jogbani-Ambari stretch, where markets that once bustled with cross-border shoppers are now witnessing declining activity. Shopkeepers report that a majority of their customers were from Nepal, attracted by comparatively lower prices in India.
