Kathmandu- In less than a year since Nepal began exporting cement to India, the initial enthusiasm among cement manufacturers has waned. What started as a promising venture now faces significant setbacks.

The primary issue is the inability to renew the mandatory Indian quality certification required for cement exports. While a few manufacturers with valid certifications have continued shipments, most whose certifications have expired are unable to export.

Exporting cement to India mandates obtaining an Indian quality certification, issued for a limited period and subject to renewal. However, delays in the renewal process have left many local manufacturers unable to export.

Currently, only one manufacturer’s certification remains valid until July or August, while the rest expired by late 2024. Despite applying for renewals, manufacturers are still awaiting a response from the Bureau of Indian Standards, resulting in an export halt.

Sources suggest this delay might be a retaliatory measure by India in response to Nepal’s restrictions on certain Indian imports, particularly dairy products. India has reportedly pressured Nepal to lift these restrictions, and the certification delays appear to be a consequence.

 

'Indian authorities have persistently lobbied to remove Nepal’s ban on dairy imports. Nepal’s refusal seems to have triggered this obstruction in cement exports,' a manufacturer stated.

Cement producers have consistently informed the government about the issue and raised it during recent bilateral trade discussions, but no resolution has been reached.

Nepal began exporting cement in the fiscal year 2022/23, driven by government incentives to promote exports. That year, the country exported 1.03 million tons of cement. The following year, exports rose to 2.84 million tons, valued at Rs 3.85 billion.

In the first six months of this fiscal year, 900,000 tons of cement were exported. However, as most certifications were still valid during this period, exports remained steady without significant growth. Manufacturers warn that exports could cease entirely in the latter half of the fiscal year as most certifications are set to expire.