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Market Bustling with People, but Business not Encouraging

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Market Bustling with People, but Business not Encouraging
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August 17: Although the market is crowded with people after the prohibitory order was lifted in Kathmandu valley, traders say that their business has not been as encouraging as it used to be.

Though there was no significant decline in trade of food and daily necessities, the business of  clothing and fancy shops, electrical goods, handicrafts and other items is still only around 10 percent. Nagendra Shrestha, who has been operating a fancy dress shop in Ason, said that even though the market seems crowded with people, the business is not taking place as expected.

“Even though the market is open, trade has not been promising because of the decline in purchasing power of consumers due to the impact of the pandemic,” he said. Although this is a good time to trade fancy clothes, the impact of the pandemic has disrupted the market.

At present, the market for handicraft items is more affected and the consumer is almost zero. The market for handicraft chiefly relied on foreign tourists in the past and the export has been completely disrupted. Gopal Tandukar, a handicraft trader in Basantapur, said that the situation in Nepal has become more critical due to non-arrival of foreign tourists.

According to the Federation of Handicraft Association of Nepal (FHAN), only about 5 percent of the total trade takes place in Nepal and about 95 percent of the trade depends on exports. As per the federation, around Rs 11 billion to Rs 15 billion handicraft products aree exported and about 1.1 million people are employed in this sector.

President of FHAN Surendrabhai Shakya said that it would take another two to three years for the handicraft industry to regain its momentum due to the impact of the pandemic.

Similarly, electronic goods dealers have also said that they have not been able to resume business like they used to. According to the Nepal Electronic Trade Association, trade of fans, bulbs, generators, rice cookers, wires and other appliances has declined by about 80 percent at present. According to the traders, the decline in consumers’ income has diverted consumers' attention to the purchase of essential commodities. 

 

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