Morang Chamber Calls for Reversal of DOI's Decision to Halt Export Subsidy Process

It warns the Department of Industry’s decision could undermine exporters’ confidence and hurt Nepal’s foreign currency earnings

The Morang Chamber of Commerce and Industry has expressed serious concern over the Department of Industry’s decision to halt the export subsidy application process for the last fiscal year (2024/25).

Representing members from industrial, commercial, and commodity sectors, the chamber has urged the government not only to reconsider the decision immediately but also to extend the application deadline and issue bonds to safeguard exporters’ interests.

The chamber warned that the move could have long-term negative consequences for the country’s export performance.

“At a time when there has been a long-standing demand to expand export subsidy coverage to additional goods, the department’s notice is surprising and demoralising,” chamber president Anupam Rathi said in a statement issued Thursday, October 9.

The statement added that the Department of Industry’s decision—communicated through its notice of the same date—contradicts the spirit of Nepal’s national export promotion policy.

According to the chamber, Nepal’s export sector—already grappling with intense global competition, economic slowdown, and political instability—will be further weakened by a decision that discourages exporters who contribute to foreign currency earnings under government policy.

“The decision risks eroding entrepreneurs’ confidence in government policies and plans,” the statement added. “The government must continue the export subsidy policy and take responsibility for supporting domestic industries and exporters.”

The chamber also urged the government to extend the deadline for exporters to submit applications under the self-declaration and Schedule-3 format for the last fiscal year. Additionally, it called on the government to issue bonds equivalent to the outstanding export subsidy amount to protect exporters, given the country’s current financial situation and difficult economic conditions.

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