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Home International Customs Nepal

Nepal-India border blockade brings trade to halt

byCT Report
20/01/2016
in Nepal
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NEW DELHI: A blockade of the border between India and Nepal since September has brought trade between the two countries to a standstill and created critical shortages of supplies essential to both social services and the economy.

Food, medical supplies and fuel has been in short supply in the mountainous nation of Nepal that shares a 1,800-mile border with India ever since a bitter dispute erupted that has so far left 50 people dead. Both countries blame the other for the border closure that is also affecting rebuilding efforts following last year’s earthquakes.

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Nepal Rastra Bank said that since the economic blockade began, exports have fallen 25.4 percent and imports have tumbled 31.9 percent.

One of the commodities Nepal is desperate for is fuel. The country is dependent on India for all its fuel imports and as supplies have dried up severe rationing has been imposed across the country, bringing manufacturing to a halt and grounding crucial aviation services.

This has opened the door to a thriving trade in Jet-A aviation fuel between Delhi and Kathmandu’s Tribhuvan International Airport where at least one mystery supplier is taking advantage of a lucrative business opportunity.

According to a Hong Kong pilot temporarily based in New Delhi, a Boeing 767 with no passengers is carrying a full load of fuel — about 16,700 gallons (113,000 lbs) — in three flights a day from the northern Indian city to the Nepalese capital.

With about 6,000 gallons of fuel needed for the return trip to New Delhi, the plane will be delivering at least 40,000 gallons a day. Whenever an essential service is required, it is provided at a premium price and this case is no different.

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