Cement imports up 15.5pc in first 10 months of fiscal year

AMID cement manufacturers’ claims that the country has become selfreliant in the construction material, cement imports rose by 15.5 percent in the first 10 months of the fiscal year. In the review period, Nepal imported cement worth Rs 3.34 billion, against the imports worth Rs 2.89 billion in the same period a year ago, according to the Trade and Export Promotion Centre statistics. Over the period, the country also saw setting up of seven new cement factories. According to Aatma Ram Murarka, former president of Nepal Cement Manufacturers Association (NCMA), the imports went up because of the ongoing development projects with foreign investment. “In case of projects with foreign investment, the government has provided customs, tax and VAT waiver on cement imports from India,” said Murarka. He said domestic manufacturers have been time and again demanding the government rollback the provision as local production can meet the market demand. “The government hasn’t reviewed it seriously,” he said, adding the projects being undertaken by Nepali contractors are, however, using domestic products. “Demand for domestic cement was high when the real estate sector was booming. But now, the completed projects are not selling well and builders aren’t coming up with new projects. This has kept the demand on the lower side,” he said. The demand for cement currently stands at 4 million tonnes annually, and domestic manufacturers supply 3.2 million tonnes of cement and imports from India amounts to 800,000 tonnes, according to NCMA. Domestic manufacturers say they can produce around 6 million tonnes of cement annually if the factories operate in full capacity. Of late, investment in this sector has increased significantly with big business groups announcing their foray. According to entrepreneurs, industrialist Vishnu Neupane will introduce Sarboattam cement and Dugar Group will come up with a new cement brand in the next fiscal year. Chaudhary Group and Golchha Organisation are also coming up with cement industries. There are 75 cement manufacturing companies registered with the Department of Industries and 40 percent of them are currently in operation. Meanwhile, clinker imports saw a significant decline, with Nepal importing the raw material worth Rs 4.88 billion in the review period — down from Rs 5.39 billion in the same period a year ago. “The decline in clinker imports is due to big manufacturers producing clinkers domestically,” Murarka said, adding seven cement manufacturers produce clinker, while 30-35 of them import the raw material from India. In the review period, Nepal imported cement worth Rs 3.34 billion, against the imports worth Rs 2.89 billion in the same period a year ago