The implementation of a rule by the Bureau of Indian Standards (BIS), which requires Nepali products to meet Indian standards for export, has impacted industries like footwear and plywood in Koshi Province.
Although the Indian government introduced the Indian Quality Standards through a law in 2016, these standards were recently enforced for products such as shoes, cement, sanitary pads, and plywood.
Nepali exports of these goods have been delayed for months due to slow processing of necessary certificates.
According to government sources, this non-customs barrier was created by India in response to Nepal's ban on importing milk products from abroad since last year.
Due to New Delhi's mandate for quality testing and approval of goods imported from Nepal, industrialists in Koshi Province are facing additional expenses in exports.
An industrialist claimed that footwear manufacturers must establish a laboratory worth Rs 10 million to get the export certification according to the standards set by the BIS.
This requirement is not limited to shoes and slippers; even plywood industries exporting from Koshi Province must refine their products to comply with Indian regulations.
Hom Prasad Ghimire, the chairman of the Nepal Plywood Manufacturers Association, said that they were preparing to meet the standards set by the BIS. He noted that plywood industries will have easier access to the Indian market after installing quality testing technology which would cost around Rs 450,000.
Currently, Century Ply and Green Ply in Biratnagar are manufacturing and exporting to India after installing Indian quality testing technology. Other industries are gradually preparing to adopt this technology as well.