Export from Makwanpur declines

By Ram Mani Dahal, Hetauda, Aug. 13: Export from Makwanpur district to India and the third countries has been declining over the years.

With the decline in the export trade, Nepal's trade deficit with India is increasing. The effect of this widening trade deficit has also been noticed in the export business of the industries operating in Makwanpur.

Export trade of the industrial zone of Hetauda was worth billions of rupees two decades ago, but it has now dropped to millions.

The export trade from Makwanpur district to India and the third countries has also decreased in the fiscal year 2021/22.

According to Makwanpur Chamber of Commerce and Industry, export industries and commercial establishments operating in Makwanpur last year had issued certificates of origin to exportable goods worth Rs. 173 million. In the fiscal year 2020/21, exports worth Rs. 236 million were made from Makwanpur while in the fiscal year 2019/20, goods worth Rs. 255 million were exported.

In the fiscal year 2019/20, Closure System International Nepal, Unilever Nepal, Godawari Polysacks and FIBC and Evans Life Sciences exported their products to India.

Similarly, in the previous year, products from the  industries other than Unilever Nepal Limited were exported to India. Last fiscal year, one commercial establishment and four industries exported industrial products, including food to India and  the third countries, according to the Association's statistics.

Krishna Kumar Gupta, president of Makwanpur Chamber of Commerce and Industry, said that the export trade has decreased and the trade deficit has increased because of the unfavourable policy of the government towards export trade.

He said that it is necessary for the government to introduce a policy to encourage export-oriented industries along with an investment-friendly environment. In the last fiscal, Closure System International Nepal exported lids to be used for plastic bottles, Godawari Polysacks and FIBC exported tarpaulins and Evans Life Sciences exported powder of Lath Salla to India.

Products such as noodles, beaten rice and chilli of Gurans Group International Pvt. Ltd. have been exported to Australia while Advanced Technology and Machine Nepal has exported waste treatment equipment to Japan. 

A decade ago in 2010/11, goods worth Rs. 678.2 million were exported from Makwanpur.

According to the Chamber of Commerce and Industry, 27 industries exported their products in 2010/11 while the number of exporting industries increased to 31 in the year 2011/12.

Due to the export of goods relating to crusher to India, the export trade also increased then. Apart from crushers, nine industries, including Ekrat Engineering Company and Machhapuchhre Herbal used to export their products.

After the open and liberal economic policy adopted by the government after 1990, national and multinational companies were established inside and outside the Hetauda Industrial Estate.

Kodak and Colgate, which have been contributing significantly to exports, have left Nepal, while Unilever Nepal Limited has stopped exporting. Most of Colgate's products and some of Unilever's products are now imported.

Colgate, Unilever and other national and multinational companies had been exporting goods from Makwanpur since 2000/2001. They exported goods worth Rs. 2.29 billion from Makwanpur at that time.