November 1: Industrialists claim that 500 big and small industries of Sunsari-Morang Industrial Corridor have been operating at 40 percent of their actual capacity even during the festivals when the demand is high. 

The industrialists blamed the government's inability to spend the development budget, failure to release budget to the local level on time, the decline in government's revenue and a slump in market activities as the major reasons for the decline in productivity.

Even the food industry could not perform business satisfactorily during Dashain. Pawan Sharda, president of Koshi Province chapter of the CNI, said that although the production of the industry has decreased due to the decrease in sales in the market, the problem has been aggravated by the government’s decision to halt the payment to the construction and other sectors.

He said that the government should facilitate in transferring the investable funds accumulated in the banks to the market at a low interest rate. Sharda says that if a stable interest rate is guaranteed for at least five years, the demand for loans will increase. Sharda said that although the government claimed that payments and expenses will start from the first day of the fiscal year, the development and construction works have been affected because the construction businessmen have not received the dues from the government while the production of cement, rods, stones and other industries is low. 

“The government should pay the builders immediately. This in turn will ensure that the contractors will pay the dealer or the industry from which they procured the goods. The money will then trickle down to the workers. It drives the economic cycle,” he said.

Businessmen complain that the flour, rice, lentil, and oil mills felt some relief during the festive period, but they still could not sell like they used to do before.

Naresh Rathi, the owner of Chandrashiv Rice and Oil Mill, said that the expectations of oil and rice sales were not met. He said, “This year, Nepal's production could not be sold because oil and rice came unhindered from across the Jogbani border.”

In previous years, the business had doubled during the festivals, but that did not happen this time. Businessmen say that since mustard oil costs Rs 45 per liter cheap in India and rice costs Rs 20 per kilo cheap compared to the Nepalese market, the traders have not been able to do business as expected since those goods enter the market through the backdoor. He said that unless the government tightens the customs, the Nepali businessmen will always have to bear losses.

Mahesh Jaju, former president of Morang Trade Association and owner of Asian Thai Foods, said that they were expecting production of the industries, which had fallen to 40 percent in the last five months, would improve with the onset of festivals like Dashain Tihar, but it did not happen.

According to Jaju, the production of industries such as biscuits, confectionery, chocolate and sweets is decreasing due to the lack of easy availability of sugar. He said, “If the government had allowed the private sector to bring sugar on time, there would not have been a situation where we would have to buy sugar at an exorbitant price.”