SATV, Kathmandu, Mar. 24 - Following the escalating tensions in the Middle East, there has been a shortage of raw materials in Banke. As a result, production has declined and some industries have reached the brink of closure.
Business owners are facing difficulties as imports of raw materials have dropped in recent days.
According to Kamal Karki, an associate member of the Nepalgunj Chamber of Commerce and Industry and managing director of Star Poly Pipe, the shortage of raw materials has created a serious problem in the industrial sector.
He mentioned that imports of raw materials have halted due to ongoing tensions in the Middle East, resulting in a significant impact on production.
“The lack of raw materials is affecting our production directly,” he said, adding, “The developed countries were already aware that war was imminent. Now that the war has started, they decided to stop sending goods, which have been halted for over a month.”
With the halt in raw material imports, production has also decreased. The crisis in the industrial sector has worsened, with business owners struggling to maintain operations.
Karki further explained that they are in a dilemma because they cannot lay off employees, nor can they afford to continue paying them under the current circumstances.
Petrochemical raw materials are usually imported from third countries through India. However, with India tightening exports to prevent shortages in its domestic market, industries in Nepal have faced severe challenges.
Senior vice-president of the Nepalgunj Chamber of Commerce and Industry, Chiranjibi Oli, noted this issue, stating, “The shortage of petrochemical raw materials is now affecting not only plastic production but also daily consumables. If the international situation remains the same, industries are concerned that the problem will deepen.”
However, Pabitra Kumar Khadka, Information Officer at the Nepalgunj Customs Office, stated that the supply of raw materials is normal.
He clarified that regular imports of items like oil and gas are ongoing and supplies of raw materials used in other industrial sectors are also being maintained smoothly and continuously.
Banke is one of the country’s main industrial hubs. The industrial production here not only meets the needs of Lumbini, Karnali and the Sudurpaschim Provinces but has also expanded its market both domestically and internationally.
The industrial area was established during the Panchayat era and has been continuously operational since then. Two additional industrial zones are currently under construction.
