KATHMANDU, Aug 24: Nepal exported cement and clinker worth Rs 234.98 million in the first month of the current fiscal year.
The records with the Department of Customs (DoC) show that the country exported 9,573 tons of cement worth Rs 70.5 million. Similarly, a total of 25,742 tons of clinker worth Rs 164.4 million were exported in the first month of FY 2023/24.
Tapping the potential of Nepal’s cement industries
Cement manufacturers said the export of the construction material surged since last year with the government announcing an eight percent cash subsidy on the export of cement and steel. Likewise, the government also waives 2-15 percent on the tariff of electricity used by the manufacturing plants that utilize electricity of over Rs 100 million annually.
According to the Cement Manufacturers’ Association of Nepal, they have been facing the problem of receiving quality certification from the Indian government. Currently, Palpa Cement Industry, Arghakhanchi Cement Limited and Balaji Cement Industries have been exporting their products to India, while a number of others have been looking forward to expanding their businesses in the Indian market.
Three domestic cement manufacturers exported more than 1.04 million tons of cement and clinker worth Rs 779.30 million 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.
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.
