Two eastern districts of Nepal – Jhapa and Sunsari – have started the export of machine-made bricks, often referred to as "Chinese bricks," to the Indian construction market. This initiative is expected to open new markets and create opportunities for Nepali brick industries.
Sariya Green Brick Industries Pvt. Ltd. in Mechinagar-15, Jhapa, and Tawache Brick and Tiles Industry in Sunsari have recently shipped bricks to Siliguri, West Bengal. These exports aim to address the high demand for bricks in India's northern and north-east region, including West Bengal, Assam, Meghalaya, and Bihar.
Koshi Province has 80 brick industries, 40 of which are currently operational. Together, these industries produce approximately 160 million bricks annually, employing around 16,000 workers. Notably, 80% of the workforce comprises seasonal laborers from West Bengal, who migrate to Nepal during the winter and return with the onset of the monsoon. The industry generates an annual turnover of Rs 3.16 billion.
Traditionally, bricks in this region have been produced manually, meeting local demand but relying heavily on seasonal labor. Machine-made bricks, despite their higher production costs, are now gaining traction due to their quality and demand in the Indian market.
The construction sector in Siliguri and nearby areas has seen increasing demand for high-quality machine-made bricks. Rajnish Karnani, director of Sariya Green Brick Industries, reported that a sample of 30,000 machine-made bricks had been sent to Siliguri for testing. Following approval, the company plans to begin regular exports from mid-December. The bricks, valued for their strength, design, and durability, are priced between Rs 17 and Rs 20 per piece in Nepal.
Transportation advantages have made exports feasible. While bricks from other parts of India travel over 2,200 kilometers to reach Siliguri, Nepal's brick industries in Jhapa and Sunsari are just 100 kilometers away.
Tawache Brick and Tiles Industry has also secured an order for 500,000 bricks from Siliguri. Anil Agrawal, the chairman of the industry, shared that the sample of 15,000 bricks sent in mid-October have been approved. Although the Department of Industry has directed brick production to begin in mid-January, the industry plans to start firing in December to meet demand and avoid disruptions caused by the rainy season.
Despite recent export successes, the brick industry in Nepal faces several challenges. According to Ramesh Bhagat, advisor to the Koshi Brick Traders Association, the economic recession since the COVID-19 pandemic has severely impacted the sector. The price of bricks has decreased from Rs 24 per piece during the pandemic to Rs 20, even as production costs for coal, labor, soil, and loan interest rates have risen.
Additionally, increased taxes—10 paisa per brick, alongside VAT—have further burdened the industry. Bhagat emphasized the need for government support, including tax exemptions and coal subsidies, to sustain the sector. He also cautioned that relying solely on short-term export orders, such as the current demand for 500,000 bricks, is insufficient for long-term growth. A comprehensive government strategy is essential to expand Nepali brick exports to India's border areas.
Amid these challenges, Nepali industries are scaling up production to seize export opportunities. Sariya Green Brick Industries, which produces 150,000 bricks daily, plans to double its capacity to 300,000 bricks in the near future. Tawache Brick and Tiles Industry, operational for 25 years, produces 600,000 bricks annually and has set a target of increasing output by 200,000 bricks to meet export demands.
As domestic demand in Nepal declines due to economic slowdowns, these industries aim to strengthen their foothold in the Indian construction market, leveraging proximity and quality to remain competitive.
