Nepali products on display in Bangkok

Kathmandu, Aug. 8

A month-long exhibition of Nepali art and handicraft products has been inaugurated in Bangkok by the Embassy of Nepal in Thailand, with the aim of promoting Nepali art and increasing exports of Nepali handicraft products.

The exhibition will run at River City Bangkok until August 30.

Titled ‘Tiger & Torma: Timeless Tales of Nepal’, the exhibition combines handicrafts reflecting Nepal's Buddhist philosophy, art, culture and traditions with products made from natural raw materials and contemporary artistic expressions, the Embassy informed in a statement.

The exhibition, features artworks produced by skilled craftspeople associated with cottage industries in different parts of Nepal, using local materials including allo (Himalayan nettle), hemp, cotton, Dhaka fabric and wool, based on designs by Thai royal artist Sakun Inthakul.

Works by Dolpa-based artist Tenzin Norbu and Dhaka textile artisan Chunu Bastola are also on display, along with carpets produced by Kumbeshwar Technical School and Nepali carpet manufacturers, paintings, floral art and other cultural artworks.

The exhibition's title refers to ‘Tiger’ and ‘Torma’, symbols in Himalayan Buddhist culture. "The tiger represents courage, strength, fearlessness and human potential transformed into wisdom through practice and training. Torma represents generosity, sacrifice, detachment and purification, as well as compassion towards all living beings," read the statement.

Visitors can explore four artistic experiences related to Nepal's Himalayan art, culture and spiritual traditions. These include contemporary Himalayan carpets and paintings inspired by torma, objects associated with Himalayan art and culture, floral sculptures made from allo and hemp fibres, and tiger-themed artworks created from handwoven Dhaka textiles.

The opening ceremony was attended by ambassadors and representatives of diplomatic missions, senior Thai government officials, businesspeople, representatives of academic institutions and the private sector, members of the art and cultural community, representatives of Nepali organisations in Thailand, members of the Nepali community and media personnel.

Nepali dishes were also served to promote Nepal's cuisine alongside its art and culture.

  Published in The Rising Nepal on 9 August 2026. 

Khanal launches outlet in London to sell Nepali products

Kathmandu, Aug. 2

Sameer Khanal, a Nepali entrepreneur in London, has opened Rosewood Pharmacy in the prestigious Mayfair district of central London.

After spending 15 years in promoting Nepali herbal products in the UK, he officially launched the pharmacy at a special ceremony inaugurated by Sheikh Faisal bin Khalid Al Qasimi, a member of the UAE royal family.

Among those attending the opening ceremony were Dr. Hemraj Sharma, President of the International Coordination Council of the Non-Resident Nepali Association (NRNA), Rajendra Pudasaini, President of NRNA UK, Biraj Bhatt, President of the Britain Nepal Chamber of Commerce, Raju Acharya, Chairman of Chitwan Aid Trust, Engineer Deepak Kunwar, Chairman of Grande International Hospital, entrepreneurs L.N. Pandey, Kamal Poudel and Basant Nepal, along with British and Nepali business leaders and community representatives.

Speaking on the occasions, entrepreneurs and leaders including the President of the NRNA Dr. Hemraj Sharma, President of Britain Nepal Chamber of Commerce Raju Acharya, described the opening of a Nepali-owned business in a prestigious and affluent location such as Mayfair as a source of pride and celebration for the entire Nepali community.

They expressed their delight that premium Nepali products are now available at such a prominent London location, saying the initiative would help promote not only Nepali products but also Nepal itself on the international stage.

Khanal reaffirmed his commitment to promoting high-quality Nepali products in international markets through his Sarayu brand.

Sarayu imports premium Nepali raw herbal ingredients—including Himalayan wild honey, Yarsagumba and Shilajit—from Nepal, processes them in London, and markets them in the UK.

Khanal said Rosewood Pharmacy is not merely a place to purchase medicines but also a platform for introducing Nepali products to global markets. Medicines and standard pharmacy products are sold at the same prices as in other pharmacies, while premium branded products are priced according to their quality and market positioning.

DICL to begin iron production by 2030

Kathmandu, July 21

The Dhaubadi Iron Company Limited (DICL) has moved ahead with an initial plan to conduct mining in at least two of the six blocks identified for Iron Ore Mineralisation Area at Duaubadi in Hupsekot Rural Municipality–05 in Nawalparasi (East). 

Issuing a letter on June 24, the company announced that it awarded the contract for the preparation of Mining Scheme Report for two of its blocks – Pokhari and Ratekhola – to Ekjati Engineering Pvt. Ltd. 

The report will provide an operational blueprint detailing how the company will extract minerals systematically and safely.

According to the preliminary estimates of the Department of Mines and Geology (DMG), Duaubadi mineral area has 100 million tonnes iron ore deposits. The project details published by the Investment Board of Nepal (IBN) for the Investment Summit 2024, estimates that Pokhari has 7.3 million tonnes ore and Ratekhola 18 million tonnes. 

Other blocks include Dhaubadi 32.5 tonnes, Durlunga 14.2 million tonnes, Ramche (North) 15 million tonnes, and Ramche (South) 9.3 million tonnes. 

 According to Dr. Janak Bahadur Chand, CEO of the DICL, the company is in the phase of quality testing or chemical analysis of the sample deposits from the sites. 

"We have sent the sample to labs for the chemical analysis. The analysis will tell us what will be the share of iron ore in the total minerals. It will take 2-4 months," he said. 

Work for the preparation of the Detailed Project Report (DPR) will also begin soon. Eleven consultants have responded to the company's call for the DPR preparation, and the task is supposed to complete in one-and-a-half years. Earlier, in absence of multi-year policy for DPR preparation had created hurdles which is no more a case. 

The company has also performed drilling in multiple locations to extract materials for the testing and analysis. While the drilling was required to go 2200 metres down, the progress is made up to 1512 metres. This drilling has provided the required number and quality of samples, and the company said that further drilling might not be needed. 

At Dhaubadi, iron band thickness is estimated at 15-30 metres and features alternating sequences of hematite-rich bands and slate/phyllite. 

However, since the project is in its initial phase, it has to achieve multiple milestones before it begins industrial projection. The Rs. 51.25 billion (US$ 394.2 million) project (according to 2024 estimates) is supposed to generate US$391 million in revenue and earn net profit of $29 million. 

According to Dr. Chand, if things go as planned, the company will begin production by early 2030. 

The information published the IBN also mentions that Daubadi has reserves of 126.76 million tonnes of Hematite ore. Earlier chemical analysis has shown that it has 17 per cent to 58 per cent total iron (TFe) within mineralisation zone. Meanwhile, the metallurgical test has shown that it has 35 per cent iron on an average. 

Dr. Chand said that apart from iron, the company will produce silica and quartzite as well as gravel needed for the railway projects as the by-products. The plant will also produce about 70 megawatts of electricity. "It is a zero-waste project," he said. The project is expected to substitute about one fourth of the total iron demand in the country which is estimated to exceed 2 million tonnes. 

Meanwhile, the government has reannounced that the government's share in the DICL would be reduced and private sector companies will be invited to run the project in Public-Private-Partnership (PPP) model. Finance Minister Dr. Swarnim Wagle made this announcement in the budget for this year 2026/27.

Published in The Rising Nepal daily on 22 July 2026.         

PM Shah vows support to promote export business

 Kathmandu, July 24

Prime Minister Balendra Shah has reaffirmed the government's commitment to addressing the concerns of entrepreneurs and businesses in order to expand the international market for Nepali products.

In a meeting with the representatives from the export related business associations held at the Prime Ministsr's Office on Friday, he pledged to take initiatives to facilitate trade with the USA, promote sheep farming in Karnali and Sudurpaschim provinces and address issues in dog chew industry.

Representatives of the Nepal Plywood Manufacturers' Association (NPMA), Nepal Carpet Manufacturers and Exporters' Association (NCMEA), Nepal Pashmina Industries Association (NPIA), and the Nepal Dog Chew Manufacturers' Association (NDCMA) were invited by the prime minister to discuss their challenges and solutions to them.

During the nearly two-hour meeting, Balaram Gurung, President of the NCMEA, said that although the United States and Europe remain the principal markets for Nepali carpets, new US regulations have created significant export difficulties, leaving exporters adversely affected.

He updated the PM that the USA has made certification by the Consumer Product Safety Commission (CPSC) mandatory from July 9. However, exports have been disrupted because Nepal lacks the required certification facilities, while the laboratory of the Nepal Bureau of Standards & Metrology was destroyed during the Gen Z movement.

"So, until an alternative arrangement is in place, the Ministry of Foreign Affairs (MoFA) send a diplomatic note to the US customs authorities seeking a one-year grace period for the testing requirement," Said Gurung.

Prime Minister Shah immediately instructed the ministry to take the necessary steps to implement the request, his secretariat informed in a statement.

Gurung also urged PM Shah to ensure the timely issuance of quarantine certification for imported wool used as raw material in carpet production. He explained that certification is currently carried out only three times a month, creating difficulties for businesses.

In response, the prime minister instructed the concerned authorities to increase the frequency of quarantine certification to two days a week. He also responded positively to the establishment of a Carpet Development Board under the Ministry of Industry, Commerce and Supplies, as suggested by Gurung. In addition, he said the government would promote sheep farming in Karnali and Sudurpashchim Provinces to increase the production of both meat and wool.

Similarly, Hom Prasad Ghimire, President of the NPMA, said that although Nepali plywood is of higher quality than imported alternatives, entrepreneurs in the sector continue to face difficulties due to existing legal provisions.

According to him, Nepal's 85 plywood factories have invested around Rs 40 billion, yet veneer, the principal raw material for plywood production, is being exported to India from Nepal at very low customs duty rates.

Prime Minister Shah said the government is working to raise customs duties on veneer exports in order to discourage the export of raw materials.

Likewise, Dhan Prasad Lamichhane, President of the NPIA, said that despite the abundance of grazing land in the Himalayan region, provisions of the Forest Act have made sheep farming in these areas difficult.

According to the statement, Prime Minister Shah assured him that the government would hold the necessary consultations and amend the legislation where required. He also expressed government's readiness in establishing collection centres for wool and other natural fibres required for pashmina production at the local level, together with processing centres at the provincial level.

Similarly, Resham Bahadur Pokharel, President of the NDCMA, said that some legal obstacles have prevented the industry from achieving its desired level of production and exports. He said that dog chews should be classified as a pet food industry rather than a dairy product and that such industries should be allowed easier access to imports of skimmed milk powder.

Prime Minister Shah said the government would study the proposal and address the issue if it is found to be appropriate.

Published in The Rising Nepal daily on 25 July 2026.         

Govt set to establish textile and clothing development council

Kathmandu, July 21

The government is set to establish a 'Textile and Clothing Development Council' to promote domestic production and Nepali products in the international market. At the direction of Prime Minister Balendra Shah, the proposed council will be established under the Ministry of Industry Commerce and Supplies (MoICS).

During a meeting with the representatives of the Garment Association of Nepal (GAN) at the Prime Minister's Office on Tuesday, he instructed the Minister for Industry, Commerce and Supplies Gauri Kumari to immediately proceed with the establishment of the council.

The PM's direction has come as a response to the demands of the entrepreneurs.

"The government is giving priority to the development and promotion of a quality ready-made garment industry based on domestically produced raw materials," said PM Shah.

The GAN expressed confidence that the proposed council would help promote exports of garments manufactured from locally available raw materials while improving the management of imports.

According to the PMO, PM Shah reaffirmed the government's commitment to providing all necessary facilitation for the growth and expansion of the ready-made garment industry.

In line with the demands raised by the GAN, Prime Minister Shah also directed the MoICS to take immediate steps to revive distressed private-sector garment factories. Likewise, he instructed the relevant authorities to expedite efforts towards concluding free trade agreements (FTAs) and attracting foreign direct investment (FDI).

"He also directed the Ministry of Foreign Affairs to address the obstacles preventing exports of ready-made garments and other products to the United States, particularly the absence of testing and certification facilities, so as to reopen market access," read a statement from the PMO.

PM Shah further pledged to develop the skilled workforce required to realise the objectives of 'Farm to Fibre, Fibre to Fabric, Fabric to Fashion, and Fashion to Export'.

President of the GAN Pashupati Dev Pandey told the PM that although the establishment of a Green Garment Village had been included in the government's policy and programme, no budget had been allocated for its implementation.

In response, Prime Minister Shah urged them to identify a suitable site for the project without delay and assured them that the necessary budget would be provided.

The Point No. 52 of the government's Policy and Programmes for the 2026/27 envisage the establishment of a Green Garment Village at an appropriate location in the vicinity of the Kathmandu Valley.

According the PMO, Prime Minister Shah also recalled that Nepal had previously followed an export-based import system in the early 1980s and encouraged the Association to undertake a fresh study of the practice and recommend appropriate measures for its possible revival.

In 1994/95, Nepal's ready-made garment industry had emerged as the country's leading export-oriented industry, with annual exports reaching approximately US$1.2 billion. However, following the expiry of the Multi-Fibre Agreement (MFA) with the United States in 2005, garment exports declined sharply, resulting in the closure of most factories, substantial investment losses, and the displacement of thousands of workers.

At present, the industry's annual exports have fallen to around Rs. 10 billion, the GAN informed in a statement.

Stressing the importance of Nepal's successful transition from a least developed country (LDC) to a developing country, he said the government was committed to resolving all the challenges facing the ready-made garment industry. He further emphasised that Nepal should develop the capacity to produce domestically the raw materials and other inputs required by the garment sector.

The delegation of the GAN included its President, Pandey, First Vice-President Basant Raj Adhikari, General Secretary Bhim Kumar Giri, CEO Suyash Khanal, and Technical Adviser Prakash Kumar Jha.

The discussion focused on the current state of Nepal's ready-made garment industry, the challenges confronting the sector, measures to promote production and exports, employment generation, and the overall development of the industry.

"The meeting also included detailed discussions on the formation of a high-level National Export Council, to be chaired by the Prime Minister, continuation and expansion of the existing cash export incentive scheme and introduction of Export Credit Insurance," according to the GAN.

Likewise, talks were also centred on the establishment of an internationally standard exhibition and convention centre, creation of an internationally accredited testing laboratory, and promotion of digital trade and cross-border e-commerce.

In its statement, the GAN expressed confidence that with industry-friendly policies, improved infrastructure, enhanced trade facilitation and the effective implementation of export-oriented programmes, the ready-made garment industry could once again become one of the country's leading export sectors.

The meeting is a part of the series of meetings PM Shah is holding with the private sector and stakeholders of business and economy to understand the challenges they face, seek suggestions on solutions and policy reforms, and issue the necessary directives to the relevant authorities for their implementation.

Published in The Rising Nepal daily on 22 July 2026.         

Reviving The Potential Underperformer

Tea, one of the most competitive products and potential exports of Nepal, has remained an underperformer for the past several decades. While the government and its agencies have remained mostly indifferent to the plight of developing markets abroad, according to tea entrepreneurs, the private sector has also failed in its strategic planning to diversify markets and make access to sophisticated markets for high-end premium products. 

As a result, Nepal's exports are massively concentrated on India. Nepal exported 11.74 million kg of tea of various types in the 11 months of the current fiscal year 2025/26, and 11 million kg of it was exported to the Indian markets alone, according to the statistics published by the Department of Customs. The rest of about three dozen countries, including Russia, China, Australia, Canada, Germany, France, the Czech Republic, Hungary, Iraq, Japan, Korea, Switzerland, the USA, the United Kingdom, and the United Arab Emirates – contributed only 740 kg. These exports drew Rs. 3.51 billion to Nepal. 

Udaya Chapagain, director of Gorkha Tea Estate and former president of the Himalayan Orthodox Tea Producers Association (HOTPA), said that the country currently produces 27 million kg of CTC, and 6.5 million to 7 million kg is orthodox, bringing the total tea production at about 33.5 million kg.

In FY 2024/25 and FY 2023/24, Nepal exported about 14 million kg of tea each year, with massive concentration to India. "As producers, we have failed to identify, develop and utilise the markets for our tea. Nepali farmers are doomed to sell their high-quality products at a lower rate," said Chapagain. 

Markets with extremely high potentials are in the vicinity. While China is the undisputed largest tea consumer in the world, there is high tea consumption in dry countries like Pakistan and Bangladesh. 

Nepal also has potential to export other top consumers like Turkey, Russia and the United Kingdom. Chapagain said that for Nepal, China is, probably, the best market since it also offers better prices compared to the South Asian nations. 

Entrepreneurs, including the orthodox tea producers, had been long lobbying the government to facilitate Nepali tea to China and promoting the product there, but there has been no progress so far. "The government and bureaucracy are not supportive in this initiative. We have submitted suggestions and demands in written form to the government via the HOTPA, but it was well-ignored," said Chapagain.

 Proven quality

In 2022, Nepal won six gold medals at the Second World Black Tea Quality Evaluation Competition organised in China. The winners from Nepal were Tinjur Tea Farmer Cooperative Society, Gorkha Tea Estate, Farmer Tea Processing Industry, Himalayan Shangrila Tea Producers, Siddha Devi Tea Estate and Kanchanjunga Organic Orthodox Tea Industry. But Nepal failed to use the achievement as an opportunity to expand exports to China and elsewhere. 

This failure from the government has helped to create the crisis situation, like export obstruction to India, as the Tea Board of India implemented mandatory testing of all products instead of samples to be eligible to enter its markets. Nepali tea was long stranded in ports and warehouses while the delayed certification resulted in an increased cost of trade, making Nepali tea less competitive. 

According to Chapagain, government here is mostly reactive and is activated when there is a crisis and takes an indifferent stance when the problem is solved. There have been no long-term initiatives or no development of strategies to position Nepali tea in the international markets. "Chinese tea-lovers have liked Nepali tea. We have found that they like speciality in tea as well", he said. "The government should execute economic diplomacy immediately to help us export high-end tea to China."

He also said that similar initiatives should be launched in Pakistan, Bangladesh, Turkey and in major European markets. His personal initiatives have helped to find markets for Nepal-made tea in European countries; if the entrepreneurs get even a small amount of support in promoting their products in those sophisticated markets, it can directly contribute to the farmers' income, entrepreneurs' profits, employment and national economy. Nepali entrepreneurs also initiated the 'Nepal Tea' trademark to implement collective branding and marketing, but since it was coldly received by the government and diplomatic missions, progress is not encouraging. 

Support to the farmers

Chapagain said that the tea promotion at the domestic front should begin with financial and technical support to the tea-producing farmers who are the foundation of the industry. According to him, Nepal should immediately provide subsidies on inputs and technology and subsidised loans to the tea farmers.  It is necessary to enhance their capacity and maintain the expected quality in the product. The Uttaranchal state of India followed a similar strategy, and now it has surpassed Darjeeling, the historical base of quality tea in India, in tea production. 

Gorkha Tea Estate has trained and supported more than 350 farmer families in producing quality organic tea. The company invests about Rs. 4 million in maintaining the quality to obtain and sustain the organic certification from the international regulatory bodies. It is certified by five quality organisations in Asia, Europe and America. 

The second step is to upgrade the Department of Food Technology and Quality Control (DFTQC). Despite an agreement between Nepal and India to upgrade the laboratory at the DFTQC, progress couldn't be made. Obtaining international/global accreditation for the DFTQC could solve half of the problems since the products certified by the domestic lab could be accepted by the international markets and regulatory bodies. Recent export glitches could also have been resolved had the country had an internationally accredited lab. 

Getting organic certification is also equally important for markets like Europe and Japan, said Chapagain, who exports about 40 tonnes of high-end organic tea under the 'Sundarpani' brand to countries like Germany. 

Tea evolution in Nepal

It's been 163 years since the first tea plant was planted in Nepal. Now commercial tea plantations are spread across about 21,000 hectares in 32 districts, with the eastern region becoming a leader in the production of both CTC and orthodox tea. When the then Prime Minister Jung Bahadur Rana brought tea seeds from China in 1863, he ordered his son-in-law, Governor of Ilam Gajraj Singh Thapa, to plant the seeds in Ilam, thus creating the first tea estate in the country – the Ilam Tea Estate. 

The period coincides with the launching of tea production in Darjeeling, across the border in India, where the climate was similar to that of Ilam. Tea connoisseurs say that the taste and flavour of the tea from Ilam and Darjeeling are identical. 

With the dawn of democracy in 1951, the first privately owned Budhkaran Tea Garden was established in the Jhapa district, while the government instituted Nepal Tea Development Corporation (NTDC), a profit-oriented business company, in 1966. For several decades, Nepal lacked a tea processing plant, and green tea leaves had to be sold to the factories in Darjeeling. The first processing plant in Nepal was established only in 1978. During the 1978-1988 decade, NTDC launched several programmes to encourage small farmers to engage in tea cultivation, which ultimately established the tea industry as a profitable enterprise, according to the National Tea and Coffee Development Board (NTCD). 

In 1982, the government declared Jhapa, Dhankuta, Terhathum, Panchthar and Ilam tea zones. While the tea plantation area in Nepal has dropped to 21,000 ha in 2023/24 from about 29,000 ha in 2018/19, production has gone up to 27 million kg from 25.20 million kg.   

Published in The Rising Nepal daily's Friday Supplement on 17 July 2026.         

Quest Pharmaceuticals completes 25 years in medicine manufacturing

 Kathmandu, July 11

The government should reconsider continuing subsidies and protection for state-run industries and instead create an environment where private companies can compete freely, said President of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Anjan Shrestha.

Speaking at an event organised to mark the 25th anniversary of Quest Pharmaceuticals, Shrestha said private companies were capable of supplying medicines and other products at lower costs than government-owned companies operating with subsidies.

“Let the private sector compete among itself. The private sector can provide products, including medicines, at a lower cost compared to the cost of government production and subsidies,” he said.

Shrestha argued that protected industries had remained financially weak for decades despite continued government support. “Why waste taxpayers’ money? The government should rethink this approach,” he added.

He also said excessive regulation of private businesses had created difficulties for investors. According to him, a delegation of the private sector recently told Prime Minister Balendra Shah that regulatory hurdles had discouraged investment.

“Prime Minister Shah has assured us that there will be regular interaction with the business community through a permanent mechanism, including with major umbrella organisations,” Shrestha said.

Quest Pharmaceuticals has completed 25 years in medicine manufacturing and is preparing to establish an exclusive innovation centre that will work in developing new products.

Speaking at the Golden Jubilee celebration organised on Friday evening in Kathmandu, Executive Director of the company Umesh Lal Shrestha maintained that research and innovation had become the company’s major priorities. The centre is under-construction in Bhaktapur and will contribute to substituting imports of high-end medicines.

He also stressed the need for clear government policies to promote industries, adjust medicine prices and encourage research.

Speaking at the programme, lawmaker Ganesh Parajuli said the fact that Nepali pharmaceutical products had secured around 50 per cent of the domestic market was encouraging.

He said the government should promote and facilitate domestic medicine manufacturers, noting that medicine prices had not increased for the past 11 years despite rising production costs.

“The government will always stand with investors and entrepreneurs. It has given priority to research and innovation,” Parajuli said.

Published in The Rising Nepal daily on 12 July 2026.         

Govt. serious about resolving tea export barriers, says FM Khanal

Kathmandu, June 19:  

Minister for Foreign Affairs Shishir Khanal said that the government is seriously concerned about the obstacles emerged in Nepal’s tea exports and that diplomatic dialogue is ongoing with the Indian side on the matter.

“We have already initiated discussions with Indian authorities to resolve the problems seen in Nepal’s tea exports. Concrete diplomatic efforts are being made to find a practical solution to the issue,” he said with the delegation of the Federation of Nepalese Chamber of Commerce and Industry (FNCCI) at the Ministry of Foreign Affairs (MoFA) on Thursday.

According to information received from the Indian side, a resolution is expected soon, he said while noting that discussions are being held with the Indian side for long-term solutions to similar problems affecting the export of tea and other goods.

The FNCCI delegation, led by its president Anjan Shrestha, had urged FM Khanal to take diplomatic initiatives to resolve the existing barriers and complexities in tea exports to India. It drew the attention of the minister to the difficulties faced by Nepal’s tea industry due to new arrangements introduced by the Indian Tea Board.

The FNCCI, in a statement, said on Friday that the recently issued Standard Operating Procedure (SOP) by the Tea Board of India has created further complications for Nepal’s tea exports. It stressed that there are no quality issues with Nepali tea and called for the matter to be raised strongly in bilateral trade mechanisms with the Indian side.

Shrestha said that as the tea sector, which has an annual turnover of around Rs. 12 billion to 14 billion, is in crisis, it would affect the wider economy and the livelihoods of millions. He urged the minister to resolve the issue as soon as possible.

The tensions began with TBI implementing mandatory laboratory testing of Nepal’s all tea consignments from May 1 this year. For the first three weeks, Indian authorities conducted random sampling, and the situation remained relaxed.

But after that, authorities in India collected samples of each consignment and sent them for testing, but no lab reports were issued, leaving the product stranded in Kolkata.

Exhibiting protests, 83 tea factories in Ilam and Jhapa halted operations on Thursday. Likewise, a delegation of the Nepal Tea Producers Association came to Kathmandu to find a solution with the government. More than 1,300 tonnes of tea produced in Nepal is stuck in the warehouses in Nepal and India.

According to the Association, this is a recurring problem and needs to be resolved once and for all.

The FNCCI also emphasised the need to establish an internationally accredited laboratory in Nepal for long-term solutions.

Deputy leader of the Rastriya Swatantra Party parliamentary party Ganesh Parajuli, and Chair of the Industry Committee at the Parliament Rahbar Ansari, who were present on the occasion, said that both short-term and long-term solutions should be sought for such problems.

Likewise, Commerce Secretary Krishna Bahadur Rawat said that the Ministry of Industry, Commerce and Supplies is also engaging through its channels to facilitate the process and expressed optimism that a positive outcome would be reached soon.

 

60,000 workers affected

According to the Nepal Freight Forwarders Association (NEFFA), with around 120 tea industries nationwide, thousands of farmers, and 50,000 to 60,000 workers directly dependent on the sector, the disruption has negatively impacted Nepal’s export trade, foreign currency earnings, and the overall economy.

Statistics from the National Tea and Coffee Development Board showed that Nepal produced 26,983 tonnes of tea, including orthodox, green tea, and other varieties in FY 2024/25.

Expressing serious concern over the recent complications in tea exports, one of Nepal’s key export commodities, and the procedural barriers seen in the Indian market, it said the situation has led to the closure of tea industries, particularly in eastern Nepal, and affected hundreds of tea gardens.

“Processed tea exported from Nepal to India has been held in warehouses for a long time on the pretext of laboratory testing and various technical procedures, disrupting production, distribution, and the entire export chain of the Nepali tea industry,” NEFFA said in a statement on Friday.

The Association noted that a significant share of Nepal’s total tea exports depends on the Indian market, and such barriers have adversely affected not only exporters and entrepreneurs but also the broader economy.

It urged the government to prioritise the issue and initiate immediate diplomatic efforts, including high-level dialogue with relevant Indian authorities, to remove procedural and technical barriers as soon as possible, ensuring smooth, simple, and uninterrupted trade.

Published in The Rising Nepal daily on 20 June 2026.   

Industry revival sounds exciting but entails significant cost and risk

Kathmandu, Apr. 25

The government's move to bring the large public enterprises (PEs), that have long been closed or running in a poor state, into operation has rekindled debate about its outcome.

The Ministry of Finance (MoF) has begun work to conduct detailed audit and property assessment of seven large industries – Udayapur Cement Industry, Gorkahkali Rubber Industry, Janakpur Cigarette Factory (JCF), Nepal Metal Company (NMC), Butwal Spinning Mills (BSM), Hetauda Textile Factory (HTF) and Nepal Orient Magnesite (NOM).

As planned earlier, the Public Private Partnership (PPP) is prescribed as the operation modality of these industries.

Netra Prasad Subedi, Spokesperson of the Ministry of Industry, Commerce and Supplies (MoICS), informed that the preliminary estimation of the Department of Mines and Geology (DoMG) has shown that the mine-based industries had greater potential. "It means the government might begin the revival of these industries from the mine-based ones such as Udayapur Cement, Orient Magnesite and Nepal Metal," he said.

The MoF had selected a consulting firm S.&S. Associates to assess the status of the four industrial establishments – JCF, BSM, NMC and NOM. Jin and Associates and S. Subedi and Associates will assist S.&S. in the property valuation process.

The move to revive PEs has drawn mixed reactions from the media, experts and private sector stakeholders.

Although the PEs are expanded across six sectors and 11 ministries, the closed or sick ones are from the industry sector and managed by the MoICS. They are labour-intensive and can provide jobs to a large number of people.

Of the seven industries under the revival process, Udayapur Cement Industry was running intermittently until February this year. It was running at loss for the last several years and staff went without pay for as long as nine months.

Meanwhile, as the government initiated the valuation of the property to privatise it or invite private investors under the PPP model, locals protested alleging that the government was selling the public asset too cheap.

According to the experts and industry officials, the company's old coal-based technology has created obstacles in expanding or upgrading the production plant of the once most sought-after brand in cement in the country. The industry has taken Rs. 240 million loan from the MoICS.

However, the revival plan is not a new phenomenon. Industry Minister Mahesh Basnet in 2015 had initiated a process for conditional privatization of Nepal Orient Magnesite, Nepal Metal, BSM, JCF, Birgunj Sugar Mill, Krishi Auzar Karkhana, Hetauda Textile and Gorakhkali Rubber.

The NOM, BSM and Birgunj Sugar Mill had drawn attention of the private sector investors and a few had submitted proposals to operate these indsutries.

Following suit to Basnet, his successor Nabindra Raj Joshi continued with the process.

He had said that the BSM and Birgunj Sugar Factory would be leased out to the private sector while Gorakhkali Rubber Udhyog was planned to be run under the PPP model.

To attract investors to run the industries then, the government had decided not to charge rental payment to the prospective lessees until the factory came into operation. Joshi wanted to move ahead in the revival drive in collaboration with the private sector.

Several Industry and Finance ministers in the last one and a half decades – including Damodar Bhandari in 2025 – had tried to address the problems in the PEs but they failed in achieving any positive results.

 

A case study of mismanagement

The Hetauda Textile Factory can be a case study in terms of sustainability of the industrial-sector PEs. The landmark Chinese-supported industry had begun operations in 1978, three years after its establishment. It was a leading manufacturer of cotton, and other textiles and a supplier of uniforms to the Nepali Army.

However, poor management, political appointments leading to overstaffing and failure to upgrade the technology caused the downfall of the industry following the restoration of democracy in 1990. The first democratic government had initiated the privatization drive as well. The factory began to incur losses in 1997, the government decided to close it in 2000 and liquidation process started in 2003, However, it took one more decade to conclude it. Finally, the government finalised the plans to sell the machinery and transfer land and buildings to Industrial Estate Management Limited (IEML).

After ascending to power in 2008, then CPN (Maoist) tried to revive the industry but the project couldn't actually take off.

Then Industry Minister Nabindra Raj Joshi tried to revive the factory along with Butwal Spinning Mills and strengthen Udayapur and Hetauda cement industries. Then, all three security agencies - Nepali Army (NA), Nepal Police and Armed Police Force – had shown interest to run the industry, if needed, jointly.

Again in 2024, the NA formally proposed to revive the mill with an estimated investment of Rs. 1.93 billion and annual operating cost of Rs. 780 million. It wanted to reoperationalise the industry to manufacture military uniforms. 

 

Broken linkages

However, reviving the HTF is not an easy task which is reflected by the estimated cost proposed by the Army. This is particularly challenging as the existing channels of backward and forward linkages have been damaged. Earlier, there was a cotton production company which supplied raw materials to the BSM and the latter supplied yarn to the textile factory.

But now all three companies are defunct.

And, current discussions and industry revival plans don't include the cotton and spinning enterprises. While the private sector initiations like Reliance Spinning Mills witnessed consistent growth in production and export, state-run BSM met an early demise. Reliance employs about 4,400 people and exports yarn worth Rs. 6-8 billion a year.

MoICS Spokesperson Subedi indicated that the government would adopt an integrated approach in reviving the industries but details are yet not prepared.

Meanwhile, all the equipment and machines of the HTF and BSM are outdated. So, these companies need an installation of new equipment at all levels. In the last two to three decades, the textile industry has undergone a massive technological advancement, said a private sector textile entrepreneur.

"Since the public institutions care less about being competitive, there is a challenge to make the revival sustainable," he said.

However, the PPP modality could be the best solution in case of manufacturing industries. It would be miraculous if the market within the country is guaranteed like in the case of HTF for which the NA said it will produce uniforms of the security agencies. Initial proposal from the security agencies said that the factory would also produce cloth for school uniform.

 

Orient sits on Rs. 5 billion loss

The government had handed over the management of Orient Magnesite in Dolakha to Khetan Group in 2014. The Group had planned to inject Rs. 120 million to bring the sick company back to the normal health. But this move couldn't provide the needed impetus to the industry. It remains shut till date.

The industry was established in 1979 to produce dead burnt magnesite and talc powder, and the production plant had a capacity of 50,000 tonnes a year.

Statistics by the MoF show that accumulated loss of this company has reached Rs. 5.16 billion. This is the second highest loss after the Udayapur Cement's Rs. 6.4 billion. The JCF has Rs. 2.90 billion accumulated loss and BSM about Rs. 2 billion. Financial analysts say that managing this loss is one of the biggest challenges in managing the PEs.

 

Public perceive it positively

People commenting on social media on these developments also said that integrative approach and market assurance could motivate private sector to be the part of management and operation of these sick or defunct industries.

Former CEO of the Investment Board Nepal (IBN) Sushil Bhatta wrote on his social media post that he was eager to see these brown field industrial projects structured in PPP model and transacted. "Good to see the essence, need and importance of PPP modality being realised," he said.

On several occasions, entrepreneurs and private sector leaders welcomed the move stating that it will create employment and utilise domestic raw materials.

Talking to The Rising Nepal, President of the Nepal Textile Association of Nepal, Shailendra Lal Pradhan, said that establishing or reviving the industry is a good move as it helps to meet the domestic demand and substitute exports in the first phase.

But there should be market assurance and facilitation in technology transfer if the government wants private investors onboard of these industries, said Pradhan. According to him, it may attract investors due to the infrastructure of the industry. Currently, industrialists are finding it very hard to get land for the industry so the physical infrastructure and land of the sick industry can be an attractive advantage for the private investors.

However, several individuals were critical of the government reviving or running the Janakpur Cigarette Factory with a few suggesting the facilities there for other purposes like medical or education.

Such a large industrial establishment can be converted into agro-processing industry, exhibition centre, medical college or international level convention centre. China has successfully converted mammoth manufacturing industries into exhibition venues and sports centres.

PEs in six sectors

The government operates enterprises in industry (10), commerce (4), service (11), social (5), utility service (5) and financial (10) sectors. Of them, 14 are managed by the MoICS, 10 by MoF, five by Physical Infrastructure Ministry, three each by Energy Ministry, Communication Ministry and Tourism Ministry, two each by Agriculture and Forest ministries, and one each by Education, Water Supply and Urban Development ministries.

Government receives a major chunk of profits from Nepal Oil Corporation and Nepal Telecommunication Company Limited. Currently, 28 PEs are in existence, of which 15 are running in loss. Interestingly, the government is earning rental from the land and building of the Janakpur Cigarette Factory.

Share structure of industries under revival process

S.N.	Name of Institution	Government	Private Sector
1	Hetauda Cement Industries Ltd.	100	0
2	Janakpur Cigarette Factory Ltd.	100	0
3	Udayapur Cement Industries Ltd.	100	0
4	Nepal Orient Magnesite Pvt. Ltd.	83.33	16.67
5	Butwal Spinning Mills Ltd.	59.74	40.26
6	Nepal Metal Company Ltd.	71.31	28.69
7	Hetauda Textile Factory	-	-
	Total	95.61	4.39

Source: MoF, 2025.

 In its annual report of the PEs for Fiscal Year 2024/25, the MoF has recommended that the State's investment in the closed or sick industries like Janakpur Cigarette Factory, Nepal Engineering Consultancy, National Construction Company, Nepal Metal Company, HTF, Nepal Orient Magnesite should be managed with appropriate alternative, following the assessment of property and liability.

Likewise, investment should be effectively managed in the company that have long been witnessing losses, such as Hetauda Cement, Udayapur Cement and Nepal Drugs Limited.

The Finance Ministry also recommended converting the PEs to public limited companies. Selling or leasing out the properties (except land) to the private sector on the basis of the nature of the PE and market competition is also an option.  

Published in The Rising Nepal daily on 26 April 2026.         

Green Home opens first childcare centre in Sudurpaschim

Kathmandu, Feb. 14

At a time when many female workers employed in factories and industries are leaving their jobs, citing their inability to find time to care for their children while industries and factories have also been reluctant to hire women who have young children, an industry in Kailali has found an alternative solution to address both problems.

Dinesh Lamsal, General Secretary of the Kailali Chamber of Commerce and Industry, has established a childcare centre, primary treatment facility, and breastfeeding room within the premises of Green Home Pvt. Ltd., which he founded in Lalpur, Godawari-6, Kailali.

The facility was inaugurated at a programme by the Treasurer of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Bharat Raj Acharya on Friday.

Acharya said that this was the first time in Sudurpashchim Province that a childcare centre, primary treatment facility, and breastfeeding room had been established within an industrial structure.

“The biggest challenge for female workers was the obligation to care for their children while working. The industry has now addressed this issue,” he said. “This practice, which has begun with this industry for the first time in Sudurpashchim Province, should be adopted by all industries.”

Built with an investment of around Rs. 1 million, the facility allows female employees with children to care for them at regular intervals. The centre is equipped with essential facilities for nutritious food and play materials for children.

Likewise, Lamsal said the childcare centre was established after experienced female workers began leaving their jobs due to childcare difficulties, with the aim of providing a supportive environment for their children within the workplace.

According to him, the industry currently employs 92 female and 32 male workers. The female workers, who earn around Rs. 20,000 per month on average, have expressed enthusiasm at being able to care for their children at their workplace.

Hari Paudel, Assistant Director of FNCCI, said that the childcare centre would support children’s learning through play.

The industry has created physical infrastructure for the childcare centre, breastfeeding room, and dressing room, while FNCCI provided the necessary internal equipment with financial and technical support from the International Labour Organization (ILO) Nepal.

The facility provides arrangements for children under four years of age to play, learn, and eat, and the industry has stated that a facilitator will also be appointed to support them.

FNCCI Sudurpashchim Vice-President Anil Kumar Bhojaniya and ILO's National Programme Coordinator Tara Kandel said that this initiative launched in Kailali is necessary and should be replicated in industries across the region.  

Published in The Rising Nepal daily on 15 February 2026.    

DJPL to invest Rs. 4.7 billion in Chitwan

Kathmandu, Feb. 4

Deurali-Janta Pharmaceuticals Pvt. Ltd. is set to diversify its production and increase its capacity with a new manufacturing plant in Chitwan.

“The new international standard production plant will be installed for Rs 4.75 billion, with the aim of import substitution, export readiness, technology transfer and creating employment,” Hari Bhakta Sharma, Founder and Executive Director of the company, said at a  press meet organised to mark the 35^th year of the company, on Tuesday.

The project would be developed within two years.

Sharma and his team have seen a huge potential in the Nepali pharmaceutical industry in production, export and competitive capacity.

However, he said that the country still lacks an industry-friendly policy. The government should support the entrepreneurs in acquiring land, the business registration and licensing process, and technology transfer.

According to him, the Department of Drugs has a provision for obtaining a separate license for each medicine production, which creates additional hassles in the production and marketing of the products.

Deurali-Janta aims to conduct a business worth around Rs. 2.6 billion this year.

“Deurali–Janata Pharmaceuticals has been a leader in Nepal’s pharmaceutical industry for the past 35 years. The company imports advanced technology to produce essential medicines locally, and it has firmly established itself as a pioneer in Nepal’s pharmaceutical sector,” said Ayush Bhakta Poudel, Director of the company.

According to him, with a focus on reducing reliance on imported medicines, the company’s goal has always been to make the country self-sufficient in pharmaceutical production. It has successfully developed and produced hundreds of medicines in Nepal, and the company’s success story is a testament to its commitment and growth in the pharmaceutical industry.

Deurali-Janta is producing 296 types of essential life-saving medicines, including capsules, tablets, liquids, ointments, dry powders, and other forms of medicinewith the application of cutting-edge technologies.

The products are rigorously researched, produced, and quality-tested using modern technologies and equipment, meeting international standards, said Poudel. The company has employed 675 individuals. 

Published in The Rising Nepal daily on 5 February 2026.  

Lumbini Ceramics receives NS certification

Kathmandu, Jan. 29

Lumbini Ceramics Limited has received Nepal Standard (NS) Product Certification from the Department of Standards and Metrology for its flagship tile brands Laminar and Cresta under the recently implemented NS 617:2082 standard.

According to the company, Laminar has been certified in the Fully Vitrified Tiles category (Group B Ia), while Cresta has received certification in the Porcelain Tiles category (Group B Ib).

The NS 617 standard aligns technically with India’s IS 15622 and, in certain performance parameters, exceeds the requirements of the international and European standard ISO 13006, providing Nepal with a nationally recognised, globally benchmarked framework for ceramic tile quality. “With this standard now in place, Nepali consumers have access to domestically manufactured ceramic tiles that are scientifically classified and transparently certified,” the company said in a statement on Thursday.

According to it, fully vitrified tiles are regarded as the highest category within ceramic tiles due to their high material density and near-impervious structure.

“Laminar’s fully vitrified tiles achieve an extremely low water absorption rate (≤ 0.08 per cent), rendering them highly resistant to stains, fading, abrasion, and long-term wear—ideal for residential floors and walls, high-traffic areas, wet zones, and demanding outdoor applications such as balconies and parking areas,” read the statement.

Likewise, Cresta’s porcelain tiles are designed for low water absorption levels. Porcelain tiles offer a balanced combination of durability, design flexibility, and cost efficiency.

Ashutosh Khetan, Managing Director of the company, described the certification as a landmark achievement.
“Receiving NS 617 certification in both the fully vitrified and porcelain categories is a historic moment for Nepal’s ceramic industry,” he said. “It establishes a clear, scientific, and nationally recognised benchmark for tile quality while demonstrating our ability to deliver world-class products at affordable prices through transparent classification and certification.”

Laminar and Cresta tiles are produced at Lumbini Ceramics’ state-of-the-art facility in Bardiya using Spanish and Italian glazes and advanced digital ink technology. The plant operates in full compliance with ISO 9001:2015, ISO 14001:2015, and ISO 45001:2018 standards.

Published in The Rising Nepal daily on 30 January 2026. 

Wow Popcorn begins export to India

Kathmandu, Jan. 20

Wow Popcorn, Nepal’s award-winning popcorn brand, has made its entry into the Indian market.

The company started exporting the product to the neighbouring market as it marked its 8th anniversary with an international expansion.

Founded in 2017, Wow Popcorn has evolved from a home-based startup into a recognised premium snack brand in Nepal.

“Reaching eight years is a proud moment for us, and expanding into the Indian market makes it even more meaningful,” said Subhakar Manandhar, Founder and Managing Director of the company.

According to him, India is a dynamic market that values flavour innovation, and the company is excited to introduce our gourmet popcorn to a wider audience.

In Nepal, it offers five flavours, including customer favourites such as Cheddar Cheese, Butter Scotch, Caramel, Peri Peri, and Cheddar Cheese and Caramel.

Published in The Rising Nepal daily on 21 January 2026. 

GAN urges to continue subsidy on exports

Kathmandu, Oct. 15

Garment Association of Nepal (GAN) has urged the government to reverse its decision to cut subsidies on exports.

The GAN has demanded the immediate reinstatement of the cash incentive scheme for export promotion. The government has recently scrapped the provisions for such subsidies, and the Department of Industry said that it wouldn’t accept any application that is likely to create financial liabilities for the government.

In a statement issued on Wednesday, the GAN warned that this withdrawal of support will severely impact investment expansion, production levels, national exports, and employment figures. The ready-made garment sector is a long-standing leader in Nepal's trade with third countries, and the Association stressed that these financial facilities are crucial for survival.

“Given Nepal’s landlocked status and the high cost of accessing sea routes compared to our neighbours, the cash incentive and the refund of Value Added Tax (VAT) are what allow us to compete in global markets,” read the statement.

According to it, the decision to halt new applications for the cash incentive is certain to have a long-term negative impact on export-oriented industries and will deprive Nepali businesses of the opportunity to be competitive internationally.

In addition to restoring the incentives, GAN for significant administrative reforms. It urged the government to make the VAT refund process 'Paperless and Faceless' immediately.

It also requested the establishment of a simplified process to grant ‘sick industry’ status to dormant export- and employment-focused businesses willing to recommence operations, thereby encouraging export growth.

  Published in The Rising Nepal daily on 16 October 2025.     

Avsar Fund to invest Rs. 380 million in MIL

Kathmandu, July 15 

Mangalam Industries Limited (MIL) has secured an investment of approximately Rs. 380 million from Avasar Equity Diversified Fund, a leading private equity fund committed to backing high-growth enterprises in Nepal.

Issuing a press statement on Tuesday, MIL said that this strategic investment marked a significant milestone in the growth journey and reflected strong investor confidence in the company’s vision, capabilities, and long-term potential.

"The infusion of capital is believed to empower MIL to strengthen operations, enhance product innovation, and expand its market presence across Nepal and beyond," read the statement.  

According to the company, the Investment will primarily be utilised to strengthen the balance sheet of the company, improve operational efficiencies, and further its commitment to sustainability and excellence, reads the press release.

“We are delighted to welcome Avasar as a strategic partner in our journey of transformation,” says Abhinav Churiwal, CEO of MIL.

He further said that this partnership reaffirms Mangalam Industries’ commitment to delivering long-term value while creating a positive impact in the communities it serves.

MIL is a leading manufacturing company in Nepal producing CPVC pipes and fittings and the only exporter of a complete range of CPVC products from the country.

Its product portfolio includes solutions for plumbing, drainage, sewage and rainwater management, water supply, electrical conduit systems, and borewell applications.

Avasar Equity Diversified Fund is Nepal’s first domestic Private Equity Fund registered with the Securities Board of Nepal under the Specialised Investment Fund Regulation, 2019.

Published in The Rising Nepal daily on 16 July 2025.   

IME Group begins fibre cement board production

Kathmandu, June 25

Everest Fibre Cement Board Industry, the first of its kind in Nepal to produce international-quality fibre cement boards, has officially started production.

The industry, established under the IME Group with an investment of Rs. 1.5 billion, was inaugurated by Minister for Industry, Commerce and Supplies, Damodar Bhandari, at an event in Kathmandu on Wednesday.

Speaking at the event, Minister Bhandari highlighted the importance of establishing a high-quality, environmentally friendly, and technologically advanced industry within Nepal, calling it a significant step towards the country’s industrial development.

He emphasised that such industries not only reduce reliance on imports but also steer the construction sector toward sustainable growth, and added that the government will continue to support production-based investment.

Chairman of the IME Group and President of the Federation of Nepalese Chambers of Commerce and Industry, Chandra Prasad Dhakal, said that the new facility uses domestic raw materials and local resources and is aiming to contribute to the construction sector.

"The industry would generate employment, save foreign currency through import substitution, and help build a more self-reliant economy," he said while adding that the industry demonstrates Nepal’s ability to produce world-class building materials using local skills and resources.

Located in Fatuwa Bijaypur Municipality–6 of Rautahat district, the automated production plant manages the entire process - from mixing raw materials to cutting, pressing, and drying.

The industry has a daily production capacity of 75,000 square feet of fibre cement boards, available in sizes of 4 foot by 8 foot, and thickness ranging from 4mm to 30mm.

"The boards are flexible, fire-resistant, weatherproof, eco-friendly, and highly durable. Their applications include external cladding, partitions, false ceilings, modular kitchens, eco-panels, and even complete structural construction—offering an alternative to bricks and plaster that can be completed within 10–15 days," the company said.

According to it, such features have led to rising demand, both domestically and internationally.

The boards also serve as an efficient, cost-effective solution for building emergency shelters in the event of natural disasters such as earthquakes, floods, or landslides. "With no need for plaster or paint, the product significantly reduces time and cost," said Managing Director of the company, Pradip Pandit.

The industry places strong emphasis on local employment, currently engaging around 200 people—over 98 per cent of whom are from the local community, and more than 40 per cent are women.

They are involved in all processes from production to packaging.

Published in The Rising Nepal daily on 26 June 2025.