In the third week of September, when continuous protests and an unofficial blockade by the southern neighbour struck Birgunj, a vibrant business city of the country, like a bolt from the blue, the commercial hub had to knock off its trade—not out of choice but out of compulsion.

Trades and imports were taken over by protests. The hustle and bustle of the city waned and cargo movement into Birgunj slowed to a crawl before coming to a standstill.

It has been a month and a half since the blockade was “lifted” and there are no protests in the border town now. But the city is still struggling to get back on its feet.

The revenue collection through the Birgunj Customs Office, which contributes 70 percent of the government’s total customs revenue, has dropped by one third compared to that before September, as traders started exploring options in the aftermath of the blockade.

According to the Birgunj Customs Office, the daily revenue collection has fallen to Rs220 million from Rs320-350 million.

Customs officials said the decline in revenue is mainly because traders switched to other customs points.

“Many traders who had already opened letters of credit to import goods through alternative customs points have not returned to Birgunj, as they are importing stuff from those entry points,” said sources at the Birgunj Customs Office.

Despite Birgunj offering easy access for foreign trade, traders have opted Biratnagar, Bhairahawa and Nepalgunj border points where the effect of cargo obstruction was less even during the time of blockade.

During the blockade, trading through Birgunj customs was completely halted for 135 days as protesters camped at the Miteri bridge that joins Birgunj with the Indian town of Raxaul.

Large numbers of consignments were rerouted to Jogbani-Biratnagar and Sunauli-Bhairahawa entry points. The traders are even said to have opened their liaison offices in these trade routes.

Many traders are reported to have acquired land on lease in Bhairahawa and Biratnagar.

Sewantak Pokharel, chief of Birgunj Customs Office, said automobile importers have switched to other entry points. “Revenue collection has been also hit because petroleum products in low volume are being imported through Birgunj,” said Pokhrel.

Industrialists say the geographical advantage that Birgunj has, as it is only 700 kilometers from Kolkata port, makes the city the first choice for industrialists and traders. The city also houses the country’s only dry port that has direct connectivity of railway service with India.

But the Madhes protest and trade embargo made them to turn to other alternative entry points.

Alarmed by the Tarai unrest, industrialists are now looking beyond the Bara-Parsa Industrial Corridor, the country’s major industrial belt. Two industrialists, who had purchased land at Bara-Parsa Industrial Corridor to set up factories, are preparing to move to Hetauda Industrial Estate.

Bijay Sarawagi, an executive member of the Federation of Nepalese Chambers of Commerce and Industry, said investment environment in Birgunj has been greatly affected after the protests.

“Despite having lots of potential to attract investors Birgunj is losing confidence of the investors,” said Sarawagi.

With the Samyukta Loktantrik Madhesi Morcha, which spearheaded the protests in the Tarai, especially in Birgunj, again planning to launch fresh protests from mid-April, industrialists and traders here are worried.

They have urged both the government and the Madhesi Morcha to engage in dialogue at the earliest.

“If they fail to resolve the outstanding issues, new conflict will start again,” said entrepreneur Biswo Karan Jain.