India puts restriction on export of cement

Even though it was the first country to welcome the successful holding of the Constituent Assembly election and has already pledged to work with whichever party forms the government in Nepal, India has restricted the export of cement including crucial raw material needed to produce it - adversely affecting dozens of cement industries in Nepal and causing the price of cement in the local market to go up.

There are reports that India is also preparing to put restriction on the import of iron.

An official at the Indian custom office in Sunauli said that on April 11, a day after Nepal successfully held the CA polls, they received a letter from the concerned government authorities to impose restriction on the export of clinkers and cements to Nepal.

"The Indian government has restricted the export as per the demand of the Indian people," he said, requesting anonymity.

Reports said that India has decided to put restriction on export of food grains including construction materials to check the growing inflation there.

The price of cement has soared to Rs 640 per bag (50 kg) in Kathmandu valley after India imposed a ban on its export last week, the Kathmandu Post reported.

To the dismay of people planning to build new homes, cement costs about Rs 100 more per bag than when the market closed last week for the Constituent Assembly elections.

The Post quoted Roshan Dahal, president of the Nepal Construction Materials Dealers Association as saying that the prices of cement could rise further as Indian government's decision would tighten supplies in the days ahead.

The production of Nepali cement factories fall far short of demand and the country has been relying on Indian imports to make up the deficit.

According to an estimate, some 70 percent of Nepal's total cement requirement is met by imports from India. nepalnews.com ag Apr 17 08