Cement exports to India plummet by over 20 percent

KATHMANDU, FEBRUARY 28:Cement exports from Nepal have witnessed a decline in the first seven months of the current fiscal year. According to the Department of Customs, the exports dropped by 20.37% compared to the corresponding period last year.

Official data indicates that as of mid-February of 2024/25, the country exported 1.153 million tons of cement valued at NPR 1.64 billion. In contrast, during the same period of 2023/24, the export quantity of the product  was 2.147 million tons, amounting to NPR 2.06 billion.

Nepal primarily sells cement and clinker to India. During the review period,  464,777 tons of clinker valued at NPR 551.5 million and 688,632 tons of Portland cement worth NPR 1.089 billion were supplied to the northern neighbour.

As of mid-February, Nepal also imported cement and clinker worth NPR 155.3 million, all of which originated from India, according to customs data.

"Unfriendly Indian gestures hampering cement exports"

Industry stakeholders attribute the decline in cement exports to the uncooperative gestures on the part of the Indian authorities. India mandates rigorous quality assessments for imported goods, including cement. Under current regulations, Nepali cement can only be exported to the Indian markets upon receiving quality certifications from the Bureau of Indian Standards (BIS).

However, according to Raghunandan Maru, President of the Nepal Cement Manufacturers Association, India has refused to issue both the issuance and renewal of BIS certifications for Nepali cement in an arbitrary manner. "This is creating significant export challenges to the Nepali businessmen." 

When questioned about the quality of Nepali cement, he asserted, "Our cement is not inferior; in fact, it meets higher quality standards than Indian cement. However, the BIS has suspended the issuance and renewal of quality certifications, restricting our exports."