Cement export from Nepal gains momentum

Cement export from Nepal gains momentum
By Republica
Published: July 26, 2023 09:00 AM

Nepal earned around Rs 780 million from cement export in FY 2022/23

KATHMANDU, July 26 : Nepal exported cements worth Rs 779.30 million in the last fiscal year, thanks to the government providing cash subsidy on export of the product.  

The records with the Department of Customs (DoC) show that three domestic cement manufacturers exported more than 1.04 tons of cements to India in the fiscal year 2022/23. This included 607,073 tons of final product worth Rs 358.95 million and 396,950 tons of cement clinker worth Rs 420.35 million.

Currently, Palpa Cement Industry, Arghakhachi Cement Limited and Balaji Cement Industries have been exporting their products. The companies expanded their business abroad after the government started providing up to eight percent cash subsidy on cement exports on top of providing a subsidy of 2-15 percent on their electricity bills.    

Palpa Cement Industries Ltd began exporting its Tansen brand cement to India towards the end of the fiscal year 2021/22. In the first lot, the company exported 3,000 sacks of cement to the southern neighbor.

Arghakhachi Cement Limited began its export from October 2022, while Balaji Cement Industries has started its export for the past one and a half months.   

There are over 50 cement companies operating in Nepal. Of them, 15 companies including Palpa Cement Industries, produce both cement and clinker. The total production capacity of the domestic cement manufacturers is reported to be 22 million tons. 

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