Industries in Sudhupaschim running at low capacity

Kathmandu, Nov. 22

The industries in the Sudurpaschim Province have utilised only 42.93 per cent capacity in the last Fiscal Year 2021/22 (mid-July 2021 to mid-July 2022).

According to a study conducted by the Dhangadhi Office of Nepal Rastra Bank (NRB) published on Tuesday, despite the poor utilistaion of their production capacity, except mustard oil producers, has increased owing to the increased economic activities recently.

The report states that sugar mills have utilised about 70.94 per cent of their capacity while soap production industries utilised just 21.35 per cent. Likewise, capacity utilisation of bricks, rice, processed milk and rosin is 49.3 per cent, 32.2 per cent, 30 per cent and 28.12 per cent.

Banks and financial institutions have mobilised 17.18 per cent loans of their total portfolio to the industry sector while such loan to agriculture stands at 10.19 per cent. The remaining 72.63 per cent loan was mobilised in service sector.

The study found that the province with just 7 per cent contribution to the national economy has many challenges such as industrial zones and villages, reliable roads and electricity projects in terms of industrial and service sector development and agricultural growth.

This province has the second smallest contribution to the national economy after Karnali's 4.10 per cent while Bagmati has the largest support with 36.90 per cent in FY 2021/22.

"Major challenges of Sudurpaschim are industrial insecurity, poor industrial infrastructure, shortage of skilled human resources, lack of capacity in the adoption of technology and less diversification in export-oriented products," read the report.

It suggested to promote micro and small enterprises based on local raw materials including Yarsagumba, honey, herbs available in the hills of Doti, Dadeldhura, Baitadi, Darchula, Bhajang and Bajura district, and rosin and turpentine. This province has high potential in clinker and cement, sugar, pulp and paper, organic manure, dairy, copper and marble industries.

Similarly, cash crops and lentils should be promoted in Kailali and Kanchanpur district.

Likewise, major agriculture produces have decreased by 8.16 per cent in the province last year. Vegetable production, however, has increased by 2.05 per cent, fruits by 3.04 per cent, and dairy 3.09 per cent while paddy production decreased by 31.49 per cent.

In tourism sector, the number of tourist-level hotel and lodges increased by 11.63 per cent and number of beds was raised by 16.22 per cent.

The study has listed fruit farming, hydroelectricity (including Karnali, Mahakali, Seti, Chameli and Budhiganga hydroelectricity projects), tourism destinations like Khaptad and Shuklaphanta national parks, Badimalika and Parashuram Dham as the biggest potential of the province.

The study has used the statistics from Darchula, Baitadi, Dadeldhura, Kanchanpur, Bajhang, Bajura, Doti, Achham and Kailali district. 

Published in The Rising Nepal daily on 23 November 2022.