Trade and Commerce

Domestic Market and Internal Trade
Domestic market in Nepal is segmented and small due to lack of transport network and low purchasing capacity of the majority of consumers. Rural weekly bazaars are the main market for 90% of the people who live in rural areas. Rural markets are the place to sell agricultural produces and buy daily necessities. Due to segmented situation, price varies from one rural market to the other. Markets in district headquarters and townships feed village market and link the major national markets in the country.
Due to unrestricted open border with India, market price in Nepal in influenced by the prevailing market price of adjoining border areas of India. Even the supply situation across the border affects the supply of merchandise and the volume of trade transaction in Nepal.
The internal channel of merchandise trade in Nepal is four-tiered as listed below.

  1. Farmer/Producer/Importers,
  2. Wholesaler/Trading Agent/Authorized Dealer,
  3. Retailer/Hawker, and
  4. Ultimate consumer

Internal Trade Policy
To make the supply system fully oriented to development and consumer needs, following objectives are envisaged by the government in term of the development of internal trade:

  1. Creation of conducive environment for the timely supply of goods derived from internal as well as from external import sources:
  2. No restrictions on the movement of goods for internal trade and the goods for exports.