Cement imports to Nepal have increased by 15.5 per cent in the first 10 months of the year, according to data from the Trade and Export Promotion Centre.

During the review period, Nepal imported NPR3.34bn compared to NPR2.89m in the same period of last year, despite seven new cement factories being established.

According to Aatma Ram Murarka, former president of the Nepal Cement Manufacturers Association, imports rose due to ongoing development projects with foreign investors. "In the case of projects with foreign investment, the government has provided customs, tax and VAT waiver on cement imports from India," Mr Murarka told local press. He added that local producers have called for the government to rollback the provision as local production can meet market demand.

The demand for cement currently stands at 4Mt and local manufacturers supply 3.2Mt of cement while imports from India amount to 800,000t, according to NCMA data. Domestic manufacturers say they can produce around 6Mt of cement annually if the factories operate in full capacity.