Price of Chinese goods likely to go up

KATHMANDU, June 23:

Traders have hinted that price of Chinese goods might increase within few days, stating that import through Tatopani Customs Office -- the major trading point between Nepal and China -- has been affected since the earthquake of April 25.

Saying that more than 490 loaded containers have been stuck at the customs point for more than two months, they said that the market would run out of stock within few days, creating shortage and ultimately making Chinese apparels dearer.

"Around 490 containers are at the customs yard and many consignments have been stuck in godown of Chinese suppliers due to road obstruction following the earthquake," Bishnu Khatri, president of Nepal Trans-Himalayan Border Commerce Association, told Republica. "The market has already started seeing shortage of Chinese goods. It is certain to affect prices."

Khatri said the plan of container operators to raise transportation fare will make Chinese goods further expensive. "Container operators are pushing for hike in transportation fare, citing different reasons including road obstructions. If transportation fare is increased, price of Chinese goods will definitely increase," said Khatri.

According to Khatri, containers charge Rs 90,000 per trip to transport goods from Khasa to Kathmandu.

Khatri, however, said there won't be any price rise if goods stuck at the customs point are released immediately.

Wholesalers of Chinese goods in New Road area, a major shopping district, closed their shops on Thursday, demanding early resumption of Tatopani Customs Office and immediate release of goods stuck there.

Traders have urged both Chinese and Nepali officials to do needful for release stuck containers as soon as possible. According to traders, Chinese officials have expressed commitment to send loaded containers toward Nepal by Thursday.

Meanwhile, traders also said recent rise in value of dollar would make Chinese goods dearer. "As most of transactions are made in US dollar, strong dollar will make Chinese goods expensive," Devendra Gautam, a wholesaler of Chinese goods at New Road, said.

Source: Republica