Submit your Article

Nepal’s vibrant Dashain market, once characterized by bustling streets full of shoppers and a palpable sense of excitement in the air, is largely subdued as a result of ongoing economic crisis. 

Nepal’s economic downturn has cast a shadow over the traditional fervor, leaving many to ponder on the impacts on sales, transactions, and the overall excitement of the festival season. Recession has brought us to a point where we need to reconsider and reevaluate the dynamics of the Dashain market. It is imperative to delve deeper into the nuanced effects of recession on the Dashain market, assessing whether the economic constraints have dampened the customary zeal and prompted a more restrained approach to spending.

In recent years, the Dashain market has experienced a visible shift in sales and transactions that serve as a barometer of economic health. While the demand for essentials and customary festive items remains steady, the extravagant purchases and splurges seem to have taken a back seat. Consumers are exhibiting a heightened sensitivity towards their financial resources. 

The Fashion Hub, nestled in the heart of New Baneshwor, is the brainchild of Juna Giri. In previous years, the lively echoes of footsteps in her store bore witness to the exuberant spirit of the season, with sales soaring from the auspicious day of Ghatasthapana. However, in the wake of the global pandemic, a subtle transformation has taken place. It’s like a big shift in how people do their Dashain shopping, and Juna’s shop is feeling it too. 

“Before Covid-19 struck, our sales were flourishing. We had about 15 daily visitors, and during Dashain, that number would swell to around 50, starting from Ghatasthapana. However, in the aftermath of the pandemic, customers have shifted to online shopping. But there aren’t as many sales as before,” says Giri. “After Covid-19, walk-in customers have slashed. The same familiar clothes hang on our racks, with few to no new arrivals.”

The hallmark of Dashain market, the hustle and bustle, has been somewhat tempered. The once hectic shoppers, darting from stall to stall, now move with a measured determination. The cacophony of haggling and bargaining, while still present, has taken on a more subdued tone. This recalibration of the shopping experience mirrors a broader societal shift towards a more mindful consumption pattern, in regards to recession. 

There has also been a noticeable surge in online shopping preferences among Dashain celebrants. Instead of rushing from stall to stall, more and more people are choosing to scroll through virtual storefronts from the comfort of their homes. This shift towards e-commerce reflects a broader societal transition towards convenience and accessibility in the shopping experience.

“We opened a TikTok account for our store, and in just a year, we’ve surpassed 38,000 followers. Many of the customers who visit us now say they discovered our store through TikTok,” says Giri.

Much like The Fashion Hub, numerous clothing stores have undergone this transformation. The tradition of haggling and bargaining, while still prevalent in the traditional market, has also been influenced by this digital evolution. Online platforms introduce a different method of negotiation, often involving the use of digital coupons, promotional codes, and comparative shopping, ultimately reshaping how consumers interact with sellers.

Market saturation has intensified the impact of the recession. Consumers now prefer unique, trendy clothing over mass-produced options found in every other store. Rose Pahari, owner of Bellevogue_np, a platform enabling customers to pre-order desired items from the USA, reflects on this shift in consumption patterns. 

“We receive substantial pre-orders for ethnic wear because individuals are inclined towards exclusivity. However, this year has witnessed a decline in consumption. We observe a surge in online bargaining as people become more discerning and prudent with their spending,” says Pahari.

Limiting the uncontrollable spending

Recession has acted as a reality check, prompting consumers to reevaluate their spending habits. While the allure of extravagant purchases remains, a newfound restraint prevails. The Dashain market, once a playground for unrestrained spending, is now a space where thoughtful choices are celebrated.

In a recent report from the Ministry of Finance, concerns arise as government expenditures, including salaries and Dashain allowances, have surpassed income, leading to a negative account balance.

Dhaniram Sharma, joint secretary of the ministry, urges against misconstruing this situation as a sign of distress, explaining that while first-quarter revenue collection fell short of targets, overall revenue is on par with last year’s. This fiscal situation prompts reflection on the age-old tradition of celebrating Dashain with lavishness, sometimes surpassing one’s financial capacity. The government’s provision of Dashain allowances, while well-intentioned, can inadvertently encourage this trend. It’s important to recognize that an extravagant Dashain celebration should not be equated with genuine tradition, but may, at times, stem from a desire to imitate unsustainable practices.

The Dashain market in Nepal stands as a testament to the resilience and adaptability of Nepali culture in the face of economic challenges. While the recession has ushered in a more measured approach to spending, it has not extinguished the fervor of the festival. Instead, it has prompted a reevaluation of priorities, emphasizing the true essence of Dashain—family, togetherness, and the celebration of traditions. As the market evolves, it continues to serve as a reflection of the ever-evolving economic landscape of Nepal.

The Nepal Stock Exchange (NEPSE) plunged by 20. 16 points to close at 1,874.60 points on Thursday.

Similarly, the sensitive index dropped by 2. 95 points to close at 359. 13 points.

A total of 7,558,542-unit shares of 292 companies were traded for Rs 1. 70 billion.

Meanwhile, Bhagawati Hydropower Development Company Limited and Mid Solu Hydropower Limited were the top gainers today with their price surging by 10. 00 percent. Likewise, City Hotel Limited was the top loser with its price dropped by 9. 09 percent.

At the end of the day, the total market capitalization stood at Rs 2. 87 trillion.  

The price of gold has increased by Rs 700 per tola in the domestic market on Thursday.

According to the Federation of Nepal Gold and Silver Dealers’ Association, the precious yellow metal is being traded at Rs 109, 500 per tola today. It was traded at Rs 108, 800 per tola on Wednesday.

Meanwhile, tejabi gold is being traded at Rs 109, 000 per tola. It was traded at Rs 108, 300 per tola.

Similarly, the silver is being traded at Rs 1,350 per tola today.

“I may be living on the banks  of Fewa Lake, but I have never encroached upon it. Instead, the lake has encroached upon me,” said Som Jalari, a member of the indigenous fishing community living in Khapaudi area near Fewa Lake, as a group of locals prepared to take out a motorbike rally to protest the Supreme Court's order to remove encroachments around lakes in Pokhara Valley.

Jalari explained that his century-old ancestral house was built in a time when boundaries and encroachments were not issues. “I have no idea why the government is forcing us to leave our ancestral home without any consultation with us. Neither the government nor the court is bothered to hear our story,” he said. “How could they label us as encroachers just like that, without even talking to us and hearing our story?”

Jalari’s sentiments echo those of all the indigenous locals around Fewa who have raised their voices against the Supreme Court’s recent order to set 65 meters from the shores of Fewa Lake as the lake’s boundary. They argue that the verdict does not do justice to the people living on the lake’s shores for centuries. “If we are to be relocated, we must receive compensation,” Jalari said.

The locals living around Fewa have formed a struggle committee to fight for their demands.

The Supreme Court recently ordered the local government to remove all encroachments and maintain a 65-meter distance from the lake shores as the lake’s boundary. The apex court issued the order in response to a writ filed by advocates, including Khagendra Subedi, and in accordance with laws governing international wetland areas. 

Pokhara Valley Lake Cluster, which includes all nine lakes of the Pokhara Valley, was declared as Ramsar site in 2016.

Locals say they won’t leave their ancestral property as they have made a lot of social, economic and emotional investments in their homestead. “Why did the government collect tax from us if our houses were illegal? Why were the banks allowed to extend loans by accepting our land and houses as collateral. We must be compensated if we are forced to leave this place,” the locals say.

Hari Bhujel, another affected local, said he invested all his property in his hotel as tourism started flourishing in Pokhara. “I was never bothered by local government authorities or tax collectors,” he said. “I don’t know why the government remained silent for decades, and why it is suddenly active.”

Bhimsen Bhujel, 65, said he should be compensated to cover the bank loans that he has taken by pledging his property as collateral if he is to be displaced. “My grandfather built this house almost a century ago, even before the lake was first measured. The government should consult with local residents before taking such important decisions,” he added.

Pokhara Mayor Dhan Raj Aacharya has already stated that the metropolitan city will comply with the apex court’s order to remove encroachers.

Nabin Baral, coordinator of the Fewa Lake Concern and Struggle Committee, said they should have special rights as long-time residents, who have voluntarily contributed to the lake’s beauty through clean-up and related activities for generations.