Veneer, plywood worth over Rs 5bn exported to India via Kakarbhitta

JHAPA: The export of veneer and plywood has significantly bolstered Nepal's foreign currency earnings and reduced the trade deficit. Veneer and plywood are produced from logs of softwood trees like Uttis, Kadam, Mauwa, and others that grow in the hilly regions.

Veneer sheets and plywood worth over Rs 5.09 billion were exported through the eastern border customs check post at Kakarbhitta between 17th July 2022 and 16th October 2024, according to Rajendra Prasad Chudal, Chief of the Mechi Customs Office.

Veneer sheets are manufactured from logs, and plywood is produced from these veneer sheets, which are directly exported to India.

Chudal reported that veneer sheets worth over Rs 736.43 million and plywood worth over Rs 5.18 billion have been exported to India through the Kakarbhitta customs checkpoint in the past 27 months.

Additionally, veneer sheets worth over Rs 147.13 million and plywood worth over Rs 99.33 million were exported to India through Kakarbhitta customs in the first three months of the current fiscal year.

Deepak Pandey, President of the Nepal Veneer Manufacturers Association, stated that the veneer industries have significantly contributed to boosting the country's economy by paying substantial revenue to the state, reducing the trade deficit by earning foreign currency, increasing farmers' income by purchasing softwood trees that would otherwise go to waste in the hills, and creating employment opportunities within the country. He mentioned that more than 120 veneer industries are currently in operation in Nepal, directly employing over 8,000 people. The highest number of veneer industries is in Jhapa, with 38 such industries in the district.

There are 80 plywood industries across the country that manufacture plywood from veneer sheets. These plywood industries have installed more than 100 veneer machines to become self-sufficient in supplying 80% of the raw materials they require.

Veneer sheets and plywood are exported to India through the customs check posts at Kakarbhitta, Biratnagar, and Bhairahawa.

Previously, veneer sheets and plywood used to be imported from India to meet demand. However, Nepal has now not only become self-sufficient in veneer and plywood production but has also become a net exporter.

By RSS