Green forest fire notification in India, Nepal

Supply-chain Risk Briefing

1. Summary

Wildfires in India and Nepal from April 10-14 are classified as medium-grade and under monitoring. These fires, coinciding with the dry season, are affecting forested areas along the Himalayan border region, with India's National Green Tribunal (NGT) ordering an investigation into the surge in wildfires.

2. Supply-chain impact

• Agricultural commodity risks: Potential impact on tea, spice, and timber production areas in the India-Nepal border region
• Air quality deterioration: Concerns over indirect impact on manufacturing operations in the Delhi-Mumbai Industrial Corridor and Kathmandu economic zone
• Overland logistics delays: Possibility of temporary disruptions to India-Nepal overland transport routes via Himalayan foothills
• Textile industry materials: Limited impact expected on natural fiber raw material supply chains including Nepal's cotton and jute
• Hydropower facilities: Potential risks to transmission lines and operational infrastructure of hydroelectric plants in the border regions of both countries

3. Watch points

• Weather conditions: Need to track wildfire spread scope and duration if dry weather persists until monsoon season (June-September) arrival
• Government response: Monitor India NGT's wildfire investigation results and whether both governments announce additional fire prevention measures