The plywood industry of Nepal stands on shaky ground as it grapples with the new quality standards set by India. Slated to take effect from February 28, 2024, these standards will be compulsory for all imported goods, potentially impacting Nepali plywood exports to its neighboring nation. Despite concerted efforts to meet the ISI (Indian Standards Institution) – a barometer of international quality standards, the Nepali industry has yet to fully comply. The Bhadrapur Municipality of Jhapa district, a significant contributor to the plywood production, is feeling the heat.
A Disheartened Business Community
In view of the impending export hurdles, the mood among the Nepali business community is somber. Over the past decade, local entrepreneurs who have established domestic industries have been majorly exporting to India. However, the new Indian standards pose a considerable challenge to this established trade. In the previous fiscal year, Nepali plywood exports were worth 1 billion 99 crores, a figure that has already been surpassed in the current fiscal year.
Upcoming Trade Talks
The issue is expected to be a hot topic in the forthcoming Nepal-India trade talks starting January 13. The chairman of Nepal Plywood Manufacturers Association, Hom Ghimire, shared that the Nepali government has initiated dialogues with India, but there’s a cloud of uncertainty about resolving the issues. Alarmingly, about 80% of Nepal’s plywood industries and numerous related enterprises are on the brink of closure, threatening significant job losses.
The Impact on Export and Revenue
Nepali plywood is a high-demand product in Indian states like Maharashtra, Karnataka, Rajasthan, Jaipur, Bengaluru, Uttar Pradesh, and is also exported to countries like Vietnam and China. The industry has been a significant source of foreign revenue for Nepal, which now stands at risk due to the new Indian trade barriers. As the clock ticks towards the enforcement date, the Nepali plywood industry braces itself for uncertain times.
Courtesy: https://bnnbreaking.com/world/india/nepals-plywood-industry-faces-uncertainty-amid-new-indian-quality-standards/