KOHALPUR, June 3:People involved in the trade of rosin and turpentine raw materials are facing huge losses this year as they are not getting good price for their products.
The traders, who had sold raw materials for rosin oil at Rs 150 per liter and turpentine at Rs 160 per kg last year, are getting only Rs 105 this year.
They say price has come down this year as India is getting cheaper supplies from Malaysia, China and Sri Lanka.
Pratap Narayan Singh, the manager of Kohalpur-based Deuti Rosin and Turpentine Industry, said that most of the industries have huge volume of raw materials in stock as the prices offered by Indian buyers is lower than their production cost.
India is the main market for Nepali rosin oil and turpentine raw materials.
Of the nine rosin and turpentine industries in Banke, three have already shut production.
Transportation cost and labor cost makes Nepali rosin and turpentine products expensive.
Umesh Yadav of Manakamana Rosin and Chemicals said Indian buyers are offering them only IRs 70-72 per liter. "They had bought our products by paying IRs 105 last year," he added.
Till last year, India was importing rosin and turpentine of up to 20 trucks per day from a single industry. Export to India has fallen considerably this year.
Rosin oil and turpentine from Nepal is mostly exported to Indian city of Kolkata. Rosin and turpentine are collected in Banke as well as Surkhet, Salyan, Dang, Rukum, Jajarkot, Dailekh and Kalikot districts.