Sunday, August 2, 2026

Tarai unrest impacts cottage, small enterprises

Kathmandu, Aug. 1

The Federation of Nepal Cottage and Small Industries (FNCSI) said that cottage and small industries, which largely depend on limited capital, local markets and daily business transactions, are the hardest hit by unrest, shutdowns, vandalism and disruptions to market activities.

Such situations weaken the confidence of entrepreneurs and adversely affect production and supply chains, it said in a statement on Saturday.

It has expressed serious concern over the recent tense situation, social unrest and violent incidents that began in Dewanganj–Kaptanganj of Sunsari district and spread over several other districts across the Tarai.

Paying tribute to those who lost their lives in incidents, it urged all concerned parties to exercise restraint in order to safeguard peace, social harmony and economic activities.

The FNCSI noted that Nepal is a country with a shared identity built on diverse ethnic communities, languages, religions and cultures, and that social harmony, tolerance and mutual trust are the foundations of national stability and economic prosperity.

It warned that such incidents have direct and long-term negative impacts on cottage and small industries, local production, trade, tourism, employment and the overall economy.

It called on all stakeholders to exercise restraint while preserving social and religious harmony.

Through the statement, the FNCSI also urged the Government of Nepal, local authorities and security agencies to ensure effective law and order in the affected areas, guarantee the safety of businesses and the lives and property of the public, and immediately create an environment in which economic activities can continue without disruption.

Published in The Rising Nepal on 2 August 2026. 

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