Nepal’s Rs 7 billion plywood export hit by India’s certification crackdown
KATHMANDU: Nepal’s cement and plywood exports to India have come to a standstill after India declined to renew the Bureau of Indian Standards (BIS) certification required for these products. The halt, affecting two of Nepal’s key export industries, has raised concerns among industrialists as cement shipments have been blocked for five months and plywood for a week.
The disruption began when India, starting March 12, 2025, refused entry to 34 trucks carrying Nepali plywood at border points including Kakadbhitta, Bhairahawa, and Biratnagar, citing missing BIS certification. Hom Prasad Ghimire, President of the Nepal Plywood Manufacturers Association, said India’s sudden enforcement—despite an earlier extension for plywood until August 28, 2025—has left exporters uncertain. “Customs-cleared trucks are stuck at the border,” he noted.
Cement exports faced a similar fate, with shipments stalled since October 25, 2024, due to India’s refusal to renew ISI certificates under BIS. Pashupati Murarka of Arghakhanchi Cement reported that only a handful of producers can still export, with most operations halted. Nepal’s customs data shows cement exports dropped 20.37% in the first seven months of fiscal year 2081/82 (July 2024–February 2025), falling to Rs 1.64 billion from Rs 2.06 billion the previous year.
India’s policy, announced a year ago, mandates BIS certification for imports, though plywood was initially exempt until August 2025. Nepali industries applied for certification, paying fees and awaiting inspections, but Indian officials have yet to act, citing limited manpower. Ghimire said the Ministry of Industry, Commerce, and Supplies has engaged with Indian authorities and Nepal’s Foreign Ministry to resolve the issue, even seeking the Prime Minister’s intervention.
Plywood exports reached Rs 7.43 billion in 2023/24, with 45 of Nepal’s 80 producers exporting to India. Only two have secured BIS certification. The stoppage threatens an industry that saw 20% growth this fiscal year, alongside cement, which had been building a market in India. Industrialists warn that prolonged delays could undo branding efforts and deepen economic woes, urging swift diplomatic action to restore trade.
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