July 26, 2023 | Investopaper
The Nepalese cement industry has witnessed a surge in exports, reaching a total value of Rs 779.30 million in the last fiscal year 2022/23 [2079/80], thanks to the government’s proactive measures in supporting exports through cash subsidies.
Data from the Department of Customs indicate that three domestic cement manufacturers exported cement to neighboring India during the fiscal year 2022/23. Palpa Cement Industry, Arghakhachi Cement Limited, and Balaji Cement Industries together successfully shipped more than 1.04 million tons of cement to India, comprising 607,073 tons of final cement products valued at Rs 358.95 million and 396,950 tons of cement clinker valued at Rs 420.35 million.
The government’s strategic move to offer up to an eight percent cash subsidy on cement exports has led to the increase of cement exports to India. Additionally, cement manufacturers have also been benefiting from subsidies ranging from 2 to 15 percent on their electricity bills, further incentivizing their foray into the international market.
Nepal boasts a robust cement industry with over 55 cement companies currently in operation. Notably, 15 of these companies, including Palpa Cement Industries, are involved in both cement and clinker production. The collective production capacity of the domestic cement manufacturers is estimated to be 22 million tons.
With the government’s continued support, cement manufacturers are optimistic about sustaining this positive momentum and contributing significantly to the country’s economic growth in the coming years.