Prices of daily essentials have gone up sharply in the market. Transportation services are not easily available. Big development projects and even small village-level schemes have been affected badly by the prolonged Indian embargo. The poorest sections of society, who depend on daily wages for their survival, are the ones facing the brunt of the economic slowdown.

Life has become hard for the 53 impoverished Badi households at Naya Basti, Dailekh who depend on daily wages to feed themselves. “It has been three months since we were out of work. The situation has worsened to such a level that we may die of starvation,” said Pawa Badi of the village.

A Nepal Rastra Bank study has projected that over 800,000 people will slip below the poverty line as a result of the banda that has lasted for nearly four months and the Indian embargo that has continued for more than two and a half months.

After the earthquake which is estimated to have pushed over 700,000 people into poverty, the prolonged banda and embargo has affected the poor the most.

Hundreds of daily wage workers in Dallu, the district headquarters, are facing a similar situation. They are not getting work because development projects and economic activities have come to a near halt due to lack of fuel.

Workers are returning home to their villages from urban centres due to lack of work. “There are no jobs and there is no sign of the blockade being lifted,” said a returning worker formerly engaged in the construction of the Mid-Hill Highway. “I have planned to come back after work resumes on the project.”  

Besides development projects, industrial and trading activities have also gone down as shipments of fuel, raw materials, food and construction materials have nearly stopped for the last three months. Warehouses belonging to business enterprises remain empty.

Traders have hiked prices sharply citing the shortage. Prices differ with every shop, and merchants seem to be competing to charge the highest price for their goods.

“The government should at least take stern action against black marketers even if it can’t have the blockade withdrawn,” said Arjun Shahi, a student.

Prices of salt, cooking oil, rice, pulse and vegetable have been rising on a daily basis. “It has become difficult to get even salt and cooking oil in the market,” said Rabin Sharma, a resident of Gulariya.

A 1-kg packet of salt costs Rs25 which used to cost Rs20 earlier. Traders have hiked the price citing higher freight charges. Cooking oil, which used to cost Rs118 per litre, now costs Rs150. There is no cooking gas, and people have been forced to switch to firewood. The price of a bundle of firewood has doubled to Rs300.  

“The price of everything has gone up. Salt, cooking oil and pulse have become dearer,” said Bindu Pariyar, a resident Titahiriya-6. “It has become difficult to run the household as everything has become so expensive.”

Along with essential food items, packaged foods have also become dearer. A packet of noodles now costs Rs25, up from Rs15 before the Indian blockade. Even then it is not easily available, say shoppers.

Meanwhile Chief District Officer of Banke, Bed Prakash Lekhak, pledged that the local administration would intensify market inspection and those guilty of black marketing would be brought to book.

“Due to the blockade, supplies of essential goods have been constrained,” said Hemraj Banjade, president of the Dang Chamber of Commerce and Industry. “The goods that are available have become dearer, and consumers have become victims of soaring prices.” He complained that traders were being accused of hiking prices, but they themselves are being forced to pay more for their stock.

Meanwhile, vegetable supplies too are running short as imports from India have shrunk. Shipments of vegetables from India have dropped to 25 percent of previous levels. According to Rani Talau Agriculture Goods Market Committee, Nepalgunj, only half of the daily requirement of 40 tonnes is being fulfilled by India.

Chairman of the Market Committee Babu Khan said vegetables had to be imported from India as domestic production was not sufficient. Freight charges have gone up along with the price of the goods. Transport entrepreneurs have hiked the fares as they have been forced to pay more for gasoline. Even school vehicles are not getting fuel, and students have been forced to walk to school.

Due to the shortage of fuel, the hotels here have been burning firewood to cook food for their guests. But even firewood is in short supply, complained Jit Bahadur KC, president of the Dang Deukhuri Hotel Entrepreneurs’ Association. He said that they were debating whether they should raise the prices on their menu as food products had become expensive.

Likewise, hospitals are facing a shortage of medicines. “Providing medicines to long-term patients has become difficult due to the shortage,” said Dr Bikas Devkota, chief medical superintendent at Rapti Sub-Regional Hospital.

Meanwhile, in Rolpa, the district headquarters of Liwang has been more severely affected by the blockade than the villages.

One of most impoverished districts in the country and where the Maoist insurgency began in 1996, Rolpa is facing a shortage of medicines as transportation has been crippled due to lack of fuel. Cooking gas, gasoline and food items are also in short supply. Rolpa Cement Factory has been closed for the last three months due to lack of fuel.

In Surkhet, the shortage of cooking gas has hit normal life hard. In Birendranagar, only 2,200 half-filled gas cylinders were issued in the past month while its usual requirement is 17,000 cylinders monthly, said Nawaraj Pokharel, chief of Nepal Oil Corporation, Surkhet.Reporting by Moti Lal Poudel in Surkhet, Thakur Singh Tharu in Banke, Durga Lal KC in Dang, Kamal Panthi in Bardia, Kashiram Dangi in Rolpa and Prakash Adhikari in Dailekh.