Economic activities have come to a grinding halt in several parts of the country, particularly in the industrial belts of Tarai, due to strikes called by various political parties and groups against the proposed delineation of provinces.

The political unrest has taken a severe toll on the economy, which is still struggling to recover after the April 25 earthquake, raising doubts whether the country would achieve its 6 percent economic growth target for this fiscal year.

All 15 districts of the Mid-western Region have come under the grip of the protests. As a result, the biggest customs point in the Western Region — the Neplajung Customs Office — has remained closed, while 41 tankers carrying petroleum products have been stranded. “The impact of strike has started to become visible for the last past two-three days,” said Rajendra Hamal, chief customs officer at the customs office. “Trucks coming from India have not been able to enter Nepal.”

According to Industrialist Kanhaiya Lal Vaidya, the government’s failure to provide security has hit the industrial sector across the region. “It takes five days for a truck to reach Dharan, Sunsari, from Nepaljung,” Vaidya said, adding the political unrest has started hitting the daily lives of the people with shortages of essential commodities. Dek Nath Gautam, vice general secretary of the Federation of Nepal Transportation Entrepreneurs, said the sector has been the hardest hit. “As much as 80 percent of the commercial vehicles are purchased taking bank loans. The trend of obstructing roads has hurt the entrepreneurs severely, Gautam said. Over 13,000 vehicles operate in the Mid-western Region.

Industries based in the Bara-Parsa Industrial Corridor, the biggest of its kind in the country, too have been hit hard due to the banda called by the Samyukta Loktantrik Madhesi Morcha. Imports of raw materials have been halted for the past one week. “It has been difficult to supply products to the market,” said Pawan Gupta, managing director of Jagadamba Steels.

According to the Bara chapter of the Chamber of Commerce, there are around 700 small and big industries in Birjung-Simara and Bara-Parsa industrial

corridors.

The industrialists complained the strike enforcers have been entering the factories forcefully and halting operations. “Production worth Rs15 million is being affected every day,” said an official at Surya Nepal, one of the country’s biggest industries.

In the Hetauda Industrial Estate in Makawanpur, industries have been facing a shortage of raw materials due to strikes in other parts of the Tarai. “First the government announced a two-day general holiday for public consultations on the constitution draft. And now, the protests over the federation have rendered the industries dysfunctional,” said Rishi Ram Ghimire, president of the Hetauda Industries Association.

In Birgunj, the banda called by the Samyukta Loktantrik Madhesi Morcha and the Tharu community has affected revenue collection at the Birgunj Customs Point and the Sirsiya Dry Port. The collections at the dry port have plunged to almost one-fifth.

The Dry Port customs office said it collected duty of just Rs10.5 million on Tuesday, compared to an average daily collection of Rs50-70 million during normal times.

Harihar Paudel, information officer at the customs office, said they were likely to miss the revenue target of Rs1.52 billion for the period between mid August and mid-September. He said they missed the last month’s target too due to irregular shipments caused by the bandas.

The Birgunj Customs Office too is also likely to miss the revenue of target. Information Officer Shushil Prasad Sharma said they needed to collect Rs275 million on an average daily to meet this month’s target of Rs8.82 billion. “However, we were able to collect just Rs228.9 million on Tuesday, and Rs112.8 million on Wednesday,” he said.

A fall in the imports of petroleum, automobiles and disruption in the customs clearance process have been attributed for the fall in the revenue collection.

Meanwhile, industrialists from Birantangar on Thursday demanded the Sunsari-Morang Industrial Corridor be declared “banda restricted zone”. Industry bodies, including Merchant Association, Morang, Morang Industries’ Association, Birat Trade Byapar Sangh and Purbanchal Chamber of Commerce and Industry, have urged the authorities concerned to take the issue seriously.

“The corridor has remained closed for the last seven days, but it is still uncertain when the situation will be normal,” said Rajendra Raut, senior vice-president of the Merchant Association, Morang.

Shiva Shankar Agrawal, president of the Industries Association Morang, urged the government to ensure security to industries.

The banda is estimated to cause a daily loss of Rs1.5 billion in the Eastern Nepal alone, while the Sunsari-Morang corridor faces an estimated loss of Rs400 million daily. It also affects the income of around 300,000 workers. Around Rs100 billion has been invested in more than 500 industries in the corridor.

Meanwhile, Dhangadhi-based traders said the area, which

has been in the grip of the strikes for the last 10 days, faces a trade loss of Rs100 million daily. It has also been facing shortages of daily essentials coupled with soaring prices.

Kamal Chaudhary, a hardware store owner, said they had not been able to purchase goods for the last two weeks. “The shortage of construction materials is being felt,” said Chaudhary.