April 23: Nepal exported 464,331 tons of cement and clinker in the first nine months of the current fiscal year. According to the statistics of the Department of Customs, cement produced in Nepal worth more than Rs 420 million was exported during this period.

According to the data released by the department as  of mid-March of the current year, Nepal exported cement and clinker worth Rs 42,32,89,000 during this period.

During the review period, clinker worth Rs 237.2 million and cement worth Rs 185.9 million were exported from Nepal. During this period, 272,328 tons of clinker and 192,000 tons of cement have been exported from the country.

Two cement industries have been exporting cement to India since the government announced a discount on exports in the current fiscal year's budget. The export of Palpa Cement’s Tansen brand and Arghakhanchi Cement have been exporting their products to India since July 9.

 Regular exports

Palpa Cement and Arghakhanchi Cement have said that Nepali cement is being exported to various cities in India. Rajesh Agarwal, the owner of Arghakhanchi Cement Industry, said that although there was some slowdown in exports during the big festivals, they are currently exporting cement on a regular basis.

Argakhanchi brand cement is also being exported to cities in Uttar Pradesh state of India. Palpa Cement started exporting Nepali products to India on July 9 and Argakhanchi Cement started exporting Nepali products to India from October 17.

The government had announced an 8 percent subsidy on the export of cement, steel and other goods and 2 to 15 percent discount on electricity tariff discount for industries that consume electricity more than Rs 100 million annually. This provision was arranged through the budget of the current fiscal year. Procedures have been made for this accordingly.

After the government announced a discount on cement exports, the producers have started export to different cities in India. According to the Cement Manufacturers Association, many cement industries are waiting for the quality certificate for cement export from the Indian government. Nepali cement industry will have to get a quality certificate from the Indian government for exporting cement to India.

According to the data of the Cement Manufacturers Association, there are more than 60 cement industries operating in Nepal. About 15 of them have been producing both cement and clinker. It is estimated that the annual production capacity of the cement industry is about 22 million tons.

Industrialists are excited after getting exemptions in export and electricity tariffs. Besides Palpa and Arghakhanchi cement industries, others including Jagdamba, Best and Solar cement industries are also preparing for export after the government announced the concession.

A recent survey conducted by the CNI showed that despite the increase in cement exports in the Indian market, most of the industries have reduced their production by 30 percent due to lack of demand in the domestic market.