Since two years, Nepali cement has started to be exported to India. Since there is no availability of limestone mines near Madhya Pradesh and Rajasthan, which are about 1000 km from the border of Nepal, there is a great potential for Nepali cement and clinker export in India's border areas of Bengal, Bihar and Uttar Pradesh.

On top of this, since the government has supported the export promotion by announcing a cash subsidy for exports, within the last two years Nepali cement and clinker have started to be exported to India. As Nepali clinker and cement started expanding the Indian market, 10 out of 14 industries of rotary technology have exported clinker and cement worth about 10 billion rupees during this period.

Nepali clinker and cement exports to India are increasing, while the Indian market is heating up, because the Indian government has not renewed the BIS (Bureau of Indian Standards) quality on Nepali cement exported to India, Nepali exports Getting discouraged. Nepali businessmen are worried about losing the Indian market, which has been prepared for years. The kind of interest and efforts that should be made on the part of the Nepali government to make Nepali exports smooth and easy has not been seen so far. 

After the 2060s, when the government paid attention to the ease of availability of limestone mines and the necessary infrastructure for mining and transportation, the private sector was attracted to operate the cement industry in Nepal. After that, the wave of indigenous cement production started based on its own indigenous raw materials (clinker). 

From 2055 to 2060, cement production started by importing clinker, gypsum and flyus from India and crushing them through the 'grinding' system. Whereas, at that time Udaipur and Hetaunda cement industries were operating from the government level in Nepal. In the 2070s, 14 large cement industries with rotary clean technology and 6 VSK old technology cement industries started operating in Nepal with their own clinker. 

Nepal became self-sufficient in clinker and cement by replacing the 100% import of clinker and cement. The import of clinker and cement, which is worth about 2 billion rupees annually, was stopped. This is also an example that if the government takes the right industrial policy and plays its role in a positive manner, the morale of the private sector will rise and an industrial revolution can be brought in the country.

There has been no increase in cement consumption in Nepal for a decade. The demand for cement is not increasing, but decreasing. The main reason for this is the increase in the number of Nepali citizens going abroad in recent years, the economic recession due to Russia and Ukraine war, and the construction of physical structures such as hotels, shopping malls, industries, and warehouses to be built by the private sector is equal to zero. 

After the increase in migration of Nepali youth abroad, when there are no people living here, who will build a house for them? The houses that have been completed are now being vacated. 

Even at the government level, lack of capital budget for development and construction, failure to pay contractors on time, etc. have directly affected Nepal's cement and cane industry. In the past one decade, the demand for cement and rods has started to decrease after the construction work in the country started to slow down. 

The opening and operation of cement and cane industries is also continuing. Without analyzing the demand and supply in the market, the businessmen themselves have started opening industries in full swing. Banks and financial institutions are also increasing investment without analyzing the market. The government is also unable to adopt a plan and policy to control and tighten the opening of more industries that the market cannot bear. The problem is increasing as the demand in the market is not increasing but the production is increasing. It is important for the government to take action on the fact that domestic consumption is also decreasing, which is a big problem.

We have already suffered the result of low domestic consumption during the Covid transition period. At that time, the cement industry, which produced clinker, was forced to produce 30 to 40 percent less than its capacity. Some of the cement industries operating on the grinding system collapsed and eventually closed down. It is definitely sad that the Nepali cement industry, which has replaced 100% imports due to the lack of foresight of the concerned businessmen, banks and financial institutions and the government, has reached this situation.

30 out of 45 cement industries based on grinding system and 5 out of 6 VSK system industries have been closed in Nepal. 14 rotary technology industries that produce their own clinker have reduced their production capacity by 40 percent. 

The main reason behind this sad situation in the cement industry is that the production is more than the demand and consumption. At present, cement consumption in Nepal is 9 million tons per year, while the production capacity of the industry is equal to 30 million tons. There is a possibility that the indigenous cement industry, which has reached a state of collapse, can still be saved if the government has appropriate policies, plans and initiatives. 

The situation of the cane industry in Nepal is not different from that of the cement industry. The relationship between cement and wood is like that of nails and flesh. That is, where cement is consumed, wood is also consumed. Without analyzing the demand and consumption, just like the cement industry was opened with a bang, the cane industry was also opened. Production began to exceed demand.