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Nepal seeks cement self-sufficiency

In Nepal, which has 40 cement factories, cement producers are said to be looking at ways of obtaining self-sufficiency. The producers, seeking help to improve extraction and transport of the necessary raw materials such as better infrastructure and a stable electricity supply, also want to boost exports. The high cost of limestone imports is said to make cement produced in Nepal uncompetitive compared to Indian products. Nepalese government backing could help producers meet domestic demand and also
June 1, 2016 Read time: 2 mins

In Nepal, which has 40 cement factories, cement producers are said to be looking at ways of obtaining self-sufficiency.

The producers, seeking help to improve extraction and transport of the necessary raw materials such as better infrastructure and a stable electricity supply, also want to boost exports.

The high cost of limestone imports is said to make cement produced in Nepal uncompetitive compared to Indian products.

Nepalese government backing could help producers meet domestic demand and also export to India, Rajesh Agrawal, managing director of Arghakhanchi Cement, is reported as saying.

Demand for Nepal's cement is high in the Indian states of Bihar and Uttar Pradesh.

There are currently 40 cement factories in the country, of which eight have captive limestone quarries; annual domestic production is about

Nepal produces about 3.5 million tonnes of cement/year but the demand is estimated at 4 million tonnes, and exports from India make up the shortfall at an estimate cost of price of NPR 1.5 billion (€12.59 million/US$13.98 million).

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