Once hailed as the nucleus of cement production, the Bara-Parsa Industrial Corridor now faces a grim reality with the closure of several cement industries. Most of these factories have either ceased operations entirely or are running well below capacity. Industry insiders lament that instead of turning profits, many are struggling to stay afloat, barely covering bank loans and labor costs. Anil Agarwal, president of the Birgunj Chamber of Commerce and Industry, recounts the decline, pointing to intensified competition and the influx of foreign investments in clinker-based cement production as key factors. "Half a dozen cement factories in this corridor have shuttered due to reduced market demand exacerbated by the COVID-19 pandemic and aggressive competition," Agarwal explains. "Some were compelled to sell cement at prices below production costs, leading to unsustainable losses."

The corridor, which once symbolized self-sufficiency in cement production and boasted investments nearing 10 billion rupees, now bears the scars of closures. The rise of Chinese-backed cement industries flooding the market with cheaper products further exacerbated the situation. Government initiatives to impose high customs duties on imported clinker aimed at bolstering local production ironically hastened the shutdowns of grinding units dependent on imported raw materials. Presently, only Jagdamba, Shalimar, Narayani, and Vishwakarma cements continue production in the corridor. Meanwhile, prominent names like International, Krishna, RMC, Shree Cement, Ambe, and Advance Cement have succumbed to market pressures and closed their doors. Sandeep Agarwal, owner of International Cement, reflects on the challenges faced post-COVID-19: "The recession coupled with competition from large-scale clinker-based industries proved insurmountable for many smaller units."

Agarwal emphasizes that while the corridor's cement industry once thrived, recent years have seen a decline due to undercutting by imports and unsustainable pricing practices. "The industry's plight escalated as major players set prices based on imported clinker, making locally produced cement uncompetitive," he adds. Efforts to export surplus cement to India as a relief measure met setbacks due to stringent Indian quality standards and unforeseen policies hindering imports of cement produced with Chinese-backed clinker in Nepal. Despite efforts to promote local cement production, challenges persist, signaling a turbulent period for Nepal's once-booming cement sector.