Kathmandu- Nepali manufacturers have breathed a sigh of relief after the Indian government renewed the Bureau of Indian Standards (BIS) certificates.
The export of Nepali goods, especially cement, had remained halted for the past five months due to the non-renewal of these mandatory certifications. While a few industries with previously valid certificates continued exporting, most were forced to stop their exports entirely.
To export cement to India, obtaining a BIS certificate is mandatory. This certification is issued for a specific period, and upon expiry, it must be renewed. Due to delays in the renewal process, Nepali cement manufacturers were unable to export their products. However, India has now started issuing renewals.
Although all industries had applied for renewal after their certificates expired, the BIS had withheld its decision. Now, however, Nepali industries are gradually receiving their renewals, according to industrialists.
Cement exports from Nepal to India began in the fiscal year 2022/23 after the Nepali government introduced budgetary provisions to encourage exports.
In the first year, Nepal exported 1.03 million tons of cement. The following year, exports increased to 2.839 million tons, valued at Rs 3.85 billion. However, exports have declined this year.
Similarly, Nepal's plywood industries, which were established to target the Indian market, also faced challenges due to the lack of BIS certification. Now, the renewal process for these industries has begun, bringing much-needed relief, according to industrialists.