Trade Disruption: Molasses Exports to Bangladesh Halted Amid Ongoing Protests

Eleven containers loaded with molasses destined for export to Bangladesh have been stranded at the eastern transit point of Kakarvitta due to escalating nationwide unrest. The protests, which began last month over a controversial quota system for government jobs, have significantly impacted Nepal’s trade.

The trade between Nepal and Bangladesh, which had come to a complete halt in mid-July, had only resumed a few days ago. However, the border has now been closed again for the next three days, causing further disruptions. According to the Nepal Transit and Warehousing Management Company Limited’s branch office in Kakarvitta, several containers are stuck at the Phulbari-Banglabandh transitional transit point, affecting the movement of goods between Nepal, India, and Bhutan.

Containers en route to Nepal from Bangladesh have also been unable to cross the transit point. Subash Pandey, Office Chief at the transit point, stated that the supplies were disrupted as the unrest intensified. “We have no idea how long it will take to return to normalcy,” he added.

Data from the transit office reveals that in the first 11 days of the current fiscal year 2081-82 BS (2024-25), Nepal exported goods worth over Rs 13.5 million to Bangladesh, while the value of imports from Bangladesh exceeded Rs 206.5 million.

The Mechi Customs Office in Kakarvitta noted that Nepal exports pulses, herbal products, molasses, foodstuffs, animal feed, Khayar (Black catechu), and coloring agents to Bangladesh. Conversely, Nepal imports jute, soybean husk, allopathic medicines, lead-acid batteries, garments, fruit juice, glass sheets, biscuits, and chocolates from Bangladesh.

Additionally, Nepali students pursuing higher education in various universities in Bangladesh have returned home following the unrest, further highlighting the widespread impact of the ongoing protests.