Kakarbhitta: India has intervened in the export of plywood from the eastern Kakarbhitta transit point. According to the Mechi Chamber of Commerce and Industry (MCCI) President Khem Prasai, 34 Nepali containers loaded with plywood were stopped from crossing the border into India by the Panitanki Customs Office, Ranigunj.
According to National News Agency Nepal, India has suspended the import of Nepali products citing the lack of Bureau of Indian Standards (BIS) certificates. The Indian Customs Department has implemented a new system requiring Nepali products to obtain the BIS. As a result, the export of plywood, cement, and other products have been suspended. The obstruction is not only at the Kakarbhitta point but also at other transit points.
“The containers have been stopped along the border area; they are neither allowed to pass the border nor they are in the position of getting back,” said Prasai. They headed towards India two weeks ago. The Indian customs has warned that the products will be confiscated if not taken back. The Nepali sides have already paid the GST tax to the Indian government.
There are 80 plywood industries in Nepal, and the establishment of a plywood factory needs an investment of at least Rs 250 million. A huge investment is at risk with the export obstruction from the Indian side, according to the plywood entrepreneurs. Similarly, a score of people are highly likely to be jobless.
During the fiscal year 2080-81 BS (2023-24), plywood worth Rs 7.43 billion was supplied to India, with this amount being Rs 4.70 billion in the fiscal year 2079-80 BS (2022/23) and Rs 350 million in the fiscal year 2078-79 BS (2021/22). Plywood industries have already slashed the operation hours from 24 to eight hours due to the reports about the obstruction in the exports. It has been a year since Nepali industries applied for the BIS, but they have not yet received it.