Nepal exported cement and clinkers worth Rs 3.85 billion in the last Fiscal Year (FY), almost three-fold of the amount that the country earned from the export of cement products in the previous fiscal year, FY 2022/23.
The records with the Department of Customs (DoC) show that the export of construction material jumped from mere Rs 779.30 million to around Rs 4 billion in the review period. Of the amount, export earnings from ready to use cement was Rs 1.97 billion, while that from the cement clinkers was Rs 1.88 billion.
Acording to traders, the export volume surged after the government started providing an eight percent cash incentive on the export of the mine-based products. The Nepal Trade Integration Strategy (NTIS) 2023 has also identified cement as one of the potential export items.
Likewise, the government also waives 2-15 percent on the tariff of electricity used by the manufacturing plants that utilize electricity of over Rs 100 million annually. With the policy coming into effect, the export of cement and clinkers surged since FY 2022/23.
The exported amount of cement makes up 2.5 percent of the exports in the review period. In the last FY, Nepal exported goods worth Rs 152.38 billion.
There are over 50 cement factories operating across the country. The total production capacity of the domestic cement manufacturers is reported to be 22 million tons annually. A total of Rs 300 billion has been invested in the domestic cement industry while the sector provides jobs to 15,000 people.
