Nepal's cement exports halted due to India's failure to renew quality certification

KATHMANDU, Oct 12: The export of Arghakhanchi Cement has come to a standstill due to the Indian government's failure to renew the quality certification.

Rajesh Kumar Agrawal, the director of Arghakhanchi Cement, stated that the export to India has been halted for the past 25 days because the one-year certification period has expired and the renewal has not been completed.

Cement exports have been halted since September 25 due to the non-renewal of the BIS (Bureau of Indian Standards) certification. Industrialist Agrawal mentioned that the market the company built over the course of a year is now at risk.

The export has been affected as the Ministry of Industry, Commerce, and Supplies has not taken any initiative for the renewal of the BIS certification. Industrialist Agrawal stated that the export has been halted due to unresolved issues that need to be settled through mutual understanding between the governments of Nepal and India.

Every cement industry is required to obtain the Indian Standard (BIS) certification, which is valid for one year. Currently, Arghakhanchi Cement's certification has not been renewed, leading to a halt in exports. In the near future, the certifications of other industries will also expire, potentially affecting their exports as well.

He stated that if the government does not promptly engage with the Indian government to facilitate the renewal of BIS certification, Nepal's potential cement exports could come to a halt.

Minister of Industry, Commerce, and Supplies Damodar Bhandari stated that the government is making efforts at a higher level to address the issue. "I am personally in discussions with my Indian counterparts, and a solution will be found soon," Minister Bhandari said, adding, "The government is taking this matter seriously."

The Government of Nepal is making diplomatic efforts to facilitate the export of cement, which is establishing itself as a major export product of Nepal, to the Indian market.

According to the Department of Customs, the export of cement and clinker increased in the last fiscal year. Based on value, the export of cement and clinker increased by 394.39 percent compared to the previous fiscal year, and by 182.78 percent in terms of quantity, as shown by the statistics.

In the last fiscal year 2023/24, Nepal exported cement and clinker worth Rs 3.85 billion. In comparison, exports in the fiscal year 2022/23 were valued at Rs 779.3 million. The export increased by Rs 3.07 billion last year compared to the previous fiscal year.

In the previous fiscal year, cement worth Rs 358.9 million and clinker worth Rs 420.3 million were exported. In the last fiscal year, 500,841 tons of clinker worth Rs 1.88 billion were exported. According to the Department of Customs, 2.33 million tons of finished cement worth Rs 1.97 billion were also exported. The only market for Nepali cement and clinker is India.

However, in the meantime, the export of Arghakhanchi cement has been halted due to the lack of BIS renewal, and the time for the remaining industries' BIS certification is also nearing expiration. If the government does not take diplomatic initiatives in a timely manner, there is a risk of losing the Indian market that has been built through hard work.