March 31: Pashupati Biscuits, the first industry of the Chaudhary Group, has been shut down for 15 days. The industry halted manufacturing after issuing a notice stating that stocks are high and market demand is low. Due to the increase in illegal import of biscuits from India via the open border, there has been a decline in the demand of domestic biscuits in the country.

Bharat Silwal, head of administration of the industry, said that even if production is stopped temporarily, biscuits in stock will continue to be sold in the market and the industry’s branches will operate as usual. Silwal said that the production of Nepali biscuits had to be stopped for a few days due to the problem in power supply, rising prices of raw materials including ghee and the decline in demand in the market due to illegal imports of Indian biscuits. He informed that the production has been stopped for a few days as there is a stock of 60,000 cartoons of biscuits.

This is the first time the industry has been shut down by publishing a public notice. The industry was established 48 years ago in 1973 by Lunkarandas Chaudhary, the founder of Chaudhary Group. Pashupati Biscuits, which opened during the golden age of the establishment of industry in the Sunsari-Morang Industrial Corridor, dominated the Nepali market by about 80 percent. Pashupati Biscuits currently belongs to Basant Chaudhary. Even if the industry is said to be closed temporarily, it may have long-term implications as the market is shrinking and raw materials are becoming more expensive, according to an informed source. The source also said, “Not only Pashupati Biscuits, about 50 percent of the industries will likely be shut down if the current situation persists.”

Silwal informed that the production of the industry will be stopped for 15 days as per Article 15 of the Labor Act 2074 BS. The notice read, “If the industry is to be fully or partially operated during that period, advance notice will be given. The work related to administration, security, accounting and sales department will be carried out as per the need.”

Silwal said that the production has been postponed as per the rules with the approval of the Labor and Employment Office. He reminded that the industry was operating for 24 hours during the lockdown period and before that as well. He added that the operation of the industry had to be reduced to eight hours as it was difficult to compete with the illegally imported biscuits from India after the prohibitory orders were lifted.

According to Silwal, even though the industry was in operation for 8 hours, they haven’t received any new orders. He said, “All the warehouses of the industry are full of manufactured goods. Millions of biscuits have to be stored in the warehouse. We are also facing problems in collecting money from the market. If someone has to pay Rs 1 million, we are able to collect just Rs 25,000. How can the industry be run in such a situation?”

Silwal said that the industry is planning to explore all possible ways to sell the goods stored in the warehouses within 15 days and to collect all the remaining dues.

 “It is not possible to operate an industry without reducing the stock of goods,” said Silwal.

 Hira Yadav, president of industry unit of Nepal Trade Union Congress (NTUC), confirmed that industry has been shut down. Yadav said, “The industry closed down as per the rules after paying everyone. None of us are left to receive any due payment. We are hopeful that the production will resume soon.”