Exports of shoes, plywood, and sanitary pads produced in Nepal to India have resumed smoothly after a recent extension of quality certifications by Indian authorities. The Bureau of Indian Standards (BIS), India’s quality certification body, had previously delayed renewing these certificates, halting exports for a few months. However, India has now temporarily recognized the existing certificates for these items, excluding cement and zinc sheets, through January 2025, according to Baburam Adhikari, Joint Secretary at Nepal’s Ministry of Industry, Commerce, and Supplies. This move has restored access to the Indian market for affected goods.
Despite the resumption of export permissions, Nepal has yet to receive formal notification from India. According to Adhikari, the export barrier was lifted following diplomatic efforts spurred by complaints from Nepali industrialists and traders. He also noted that while exports are resuming for shoes, plywood, and sanitary pads, the reason for the continued exclusion of cement and zinc sheets remains unclear pending official communication.
The initial disruption in export certification caused a sharp drop in cement exports to India. Nepal’s customs department reported a significant decline, with only 18,308 tons of cement exported in the first quarter of the current fiscal year compared to 155,248 tons in the same period last year.
This delay in renewal is seen by some officials as an informal response by India to Nepal’s ban on nine categories of foreign dairy products. Nepali government sources suggest that India may be using these delays as leverage, possibly to encourage the lifting of the dairy import ban. The Ministry of Agriculture and Livestock Development is reportedly in discussions to potentially reopen dairy imports, responding to demand from five-star hotels, airlines, and food industries that rely on dairy imports.
Nepal implemented a comprehensive ban on specific dairy imports in February 2023 due to excessive stock of locally-produced milk products. This ban affected items like skimmed and whole milk powder, whey, butter, and ghee, and has been a point of interest for Indian officials, with discussions raised during recent bilateral meetings. However, ongoing festive holidays in Nepal, including Dashain, Tihar, and Chhath, have slowed progress on lifting the ban.
In 2016, India introduced legislation requiring imported goods to meet Indian quality standards, impacting products such as shoes, cement, plywood, and sanitary pads only recently. Jasmine Hygiene Products Pvt. Ltd., a Nepali manufacturer of sanitary pads, diapers, and masks, confirmed the extension of their export deadline after facing a two-month export halt.
Goldstar Shoes Resumes Exports to India
Kiran Shoes Manufacturers Pvt Ltd has resumed exports of Goldstar shoes to India after the quality certification issues were resolved. Goldstar is among the most popular Nepali shoe brands exported to India. Vidushi Rana, Executive Director of Kiran Shoes, confirmed that the necessary quality certification has been approved, with more detailed information expected soon. Earlier, due to export delays, the company had temporarily laid off some workers and appealed to the Nepal-India Chamber of Commerce and Industry to help resolve the barriers.
Sunil KC, President of the Nepal-India Chamber of Commerce and Industry, noted that the organization actively worked to address Goldstar’s export challenges. "The current situation should now allow for uninterrupted exports of Goldstar shoes, although occasional, short-term obstacles may still arise," KC added. To further streamline exports, Kiran Shoes is preparing to open a manufacturing unit targeting the Indian market in Bhairahawa’s Special Economic Zone (SEZ).
