With drastic decline in the number of incoming and outgoing vehicles in Kathmandu due to the Maoist blockade around the Valley, the worst hit sector is business. Security officials at the Nag Dhunga checkpoint said 80 vehicles entered Kathmandu on the first day of the blockade, down from 500 on a normal day. "Most of the cargo trucks and buses stayed off the road," said an army officer at Nag Dhunga.

Business leaders say they still haven't figured out losses. "It's incalculable," said one, adding that it would run into hundreds of millions of rupees a day. "During Nepal bandas we calculated that the loss amounts to more than Rs 150 million a day," said Binod Bahadur Shrestha, president of Federation of Nepali Chamber of Commerce and Industry (FNCII). "But this indefinite blockade will certainly incur heavier losses."

The government has said it has stock of daily necessities for more than a month but consumers are already bearing the brunt. There is already scarcity of essentials and prices have gone up. "Even when there are vegetables, they are stale and expensive," says Guru Prasad Poudel, a priest from Baneswor. Ganga Chhetri, a 52 year old green grocer, said since there has been no supply of fresh vegetables, she does not have anything to sell. "Blockades like these don't affect rich people but it is a matter of survival for us," she said. "I hope we will not have to starve to death."

Even so, trucks carrying dairy produce and vegetables have entered Kathmandu from the Sanga pass to Banepa and Dhulikhel, providing some respite to consumers. But as the scarcity begins to bite, many consumers feel some shops are taking advantage of the situation. "It is evident everywhere that business community is cashing in," says 25-year-old Sarina Maharjan, who works in a travel agency.

The government has been assuring and reassuring transport entrepreneurs and business firms that it will provide adequate security. Yet, few appear convinced. "This is the result of fear psychosis triggered by terrorism," said Information Minister and government spokesman Mohmmad Mohsin. "We believe we will be able to help people get rid of such fear in the days to come."

The army has been escorting convoys of buses and trucks through the Thankot checkpoint. Said the army officer in Nag Dhunga: "Within a few days, people will come to know that all is well and vehicle movement will be normal again."