Citing the need of protecting the environment and domestic industry, Finance Minister Surendra Pandey, through the budget speech, had raised export duty on crushed stones by 122 percent and stone mix by 185 percent.
"Such a rise has sharply increased the cost of doing business and will directly hit exports," said Narayan Dhakal, president of Nepal Stone-Gravel Industries´ Association (NSGIA), Rupandehi. He added that the entrepreneurs will not call off their strike until the government revoked the decision.
There are 51 crusher industries in Rupandehi. The association says the investment in the sector stands at about Rs 2 billion.
Export of crushed stones and sand to India through Bhairahawa customs alone was contributing about Rs 800,000 in revenue every day. Rupandehi District Development Committee too generates annual revenue of Rs 150 million from the export of river-based items including crushed stones and sand.
According to the association, 800 trucks transport the goods through the customs to India daily.
Entrepreneurs charged that the government wanted the crusher industries closed by raising the duty, contrary to what they had demanded.
The strike of industries, meanwhile, has hit wage earners who survive by working on the banks of Tinau River. The Association claims that the number of such workers crosses 50,000.
Krishna Prasad Sharma, central member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI), said the increased duty has hit the Nepali exports´ competitive edge in the Indian market. "This can bring exports to a halt," he said.
Entrepreneurs, however, are hopeful that the government will meet their demand. "The government has frequently revoked its decisions after facing pressure. We are optimistic that the pressure from the industries will work this time as well," said an official of the association.
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