Nepal was able to export goods worth Rs 2 trillion in the previous fiscal year (2078-79 BS) while the figures of goods imported was put at Rs 19.2 trillion.
In the fiscal year 2077/78 BS, the exports of goods had crossed trillions of rupees. Nepal had exported goods worth Rs 1.41 trillion during that fiscal year.
Soybean oil and palm oil topped the goods tally exported to foreign countries. Nepal does import the raw materials of soybean oil and palm oil. In the previous fiscal year, Nepal exported soybean oil worth Rs 48 billion followed by palm oil worth Rs 40 billion.
Other items of goods (that) Nepal exports include coffee, tea, garments, cotton thread, carpet among others.
The export of these goods, however, does not seem to strike a balance in the Nepal’s trade deficit that is put at Rs 17 trillion. The export of cements, however, has given a ray of hope that the trade deficit can be reduced, of late.
Cement factories have been looking for international markets to export their products as Nepal has been self-sufficient in cement.
Cement manufacturing companies have been saying that they can export a large amount of cement if they are given subsidy for exporting the products. Nepal Cement Producers’ Association has claimed that it can export cement worth Rs 1.5 trillion annually.
Addressing the demand of the entrepreneurs, the Nepal government has published a procedure regarding the export incentives in the national gazette.
The procedure stipulates that cash subsidy of up to 8 percent can be given to exporters of more than 500 million rupees. Those who export less than 500 million will get subsidy amounting to 4 percent of the total export.
There are currently more than 5 dozen cement industries operating in Nepal. Rs two billion has been invested. More than 90 to 95 million tons of cement are consumed annually in Nepal.
Pashupati Murarka, owner of Arghakhanchi Cement, who exported 1,400 sacks of cement to India a few days ago, said that the export was possible with the encouragement of the government.
Arghakhanchi Cement has been exported to Maharajganj in the Indian State of Uttar Pradesh.
Now cement, later clinker can be exported
Along with foreign investment, technology has also entered the Nepali cement industry. Industries with the capacity to produce 6,000 metric tons per day have come into operation.
With the influx of foreign investment, the competition in the domestic market is increasing. Nepal is self-sufficient in both cement and clinker. Businessmen say that the government's incentive policy will help export cement and clinker.
