Bihar Hit Hard By Nepal Violence: Business Losses Exceed Rs 400 Crore as Trade Comes To A Halt

Muzaffarpur: The ripples of Nepal unrest are sending far-reaching ripples in Bihar, with business remaining far from usual. Sutapatti, one of North Bihar’s largest cloth markets, witnesses an annual export of cloth worth over Rs 400 to Nepal.

Additionally, the nearby Islampur area exports Lahthi, a popular wooden product, worth Rs 100 to Rs 150 crore. These transactions mostly happen during peak festival seasons like Durga Puja. However, this year, violence in Nepal has resulted in the complete sealing of the border, leaving businesses at a standstill.

According to local traders, the situation is dire. “The main season for the cloth trade is during Dussehra, but due to the border being closed, traders are not able to come from Nepal. Booked orders are being cancelled, and the goods are stuck in transport,” said Rishi Agarwal, a wholesale cloth trader in Sutapatti.

The border closure, a direct result of the ongoing agitation in Nepal, has meant that traders from Raxaul, Jaynagar, Janakpur, and other border towns are unable to reach the market, affecting the flow of goods and stalling sales.

The impact of Nepal’s social media ban agitation

Nepal erupted in violence after the government imposed a ban on social media. The decision triggered mass protests among the youth. The unrest has led to the tragic deaths of over 34 people since the protests started on September 8.

The border closure continues to affect trade across the region, especially in places like Muzaffarpur. “This is the biggest season of the year for us, and business worth ₹400 crore was done last year. But this time, we’re facing losses of over ₹300 crore,” said Moolchand, a prominent cloth trader in Sutapatti. His market, which houses more than 750 shops, is now eerily quiet, with many goods stuck in warehouses as buyers from Nepal are unable to make their way to Muzaffarpur.

Business at a standstill

Arun Agarwal, another cloth merchant in Sutapatti, expressed his concern over the situation. “Even my relatives' businesses in Nepal have been hit. Their hotels and homes have been burnt. People are living in hiding, and many of my clients have cancelled their orders. Until the situation normalises, the goods can’t be sent, and the warehouses are full of unsold stock.”
The economic repercussions are particularly significant given the timing – Durga Puja, traditionally one of the busiest seasons for these traders, is now seeing a severe dip in business.

A rich history of trade in Sutapatti

The Sutapatti market, established around 1915 by the Marwari community from Rajasthan, is steeped in history. It was once one of the top three cloth markets in India before Surat Mandi overtook it in terms of scale. The largest cloth market in North Bihar draws wholesale buyers from Bihar, Bengal, and Nepal.

Islampur’s Lahthi Business Also Suffers

In Islampur, the Lahthi trade has similarly come to a halt. Lahthi – a traditional wooden item from Muzaffarpur – is a popular product in Nepal, especially during the festive season. Riyaz Ahmed, the operator of Baba Lahthi Bhandar, explained, “The demand for Lahthi spikes during Durga Puja and Navratri, but due to the sealed border, our orders are stuck. The loss in business this year could amount to Rs 100 to Rs 150 crore.”

Islampur’s Lahthi market, with more than 250 shops, has long catered to a steady stream of buyers from Nepal. However, the ongoing unrest and border closure have led to cancelled orders and empty shops.