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Nepal-China trade hit as Bhotekoshi floods disrupt key border routes ahead of festivals

Flood damage forced cargo onto longer routes and left about 1,000 importers affected, with transport costs and delivery times expected to rise, traders said.

  • Devastating floods and mudslides along the Nepal-China border have paralyzed trade, killing 1,410 people with over 5,650 still missing as of Wednesday, September 09, 2026.
  • The destruction of the primary Rasuwagadhi and Tatopani border crossings forced all cargo traffic onto the difficult Korala route, which traders warn lacks necessary infrastructure for year-round use.
  • Ram Hari Karki, president of the Nepal Trans-Himalayan Border Commerce Association, estimated traders lost at least NPR 2 billion after floods swept away containers, with transport costs rising 10 to 15 per cent.
  • Retailers fear shortages of consumer goods during the September-to-November festival season, likely increasing Nepal's economic dependence on India as 10 per cent of electricity capacity remains knocked out.
  • Rebuilding connectivity requires significant time and financial assistance, potentially creating a 'dual dependence' on China for infrastructure and India for trade, complicating efforts to maintain strategic autonomy.
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The Nepalese authorities have also reported that more than 5,100 persons remain missing.

·Las Condes, Chile
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Startup And Technology News From Nepal broke the news on Thursday, September 3, 2026.
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