Nepal Exports Over NPR 1 Billion Worth of Plywood to India via Krishnanagar

Krishnanagar Customs has emerged as a major trade gateway, with Nepal exporting plywood worth over NPR 1 billion to India in the last fiscal year 2081/82 (2024/25). Additionally, prepared cement worth more than NPR 750 million was also exported through the same checkpoint, according to the Krishnanagar Customs Office.

During FY 2081/82, a total of 1.694 million cubic meters of plywood valued at NPR 1.14 billion was exported to India. In comparison, the previous fiscal year 2080/81 saw 1.586 million cubic meters worth NPR 1.48 billion exported. Although the export volume increased this year, the overall value slightly decreased.

Certified Quality Plywood Driving Demand in India

Nepali plywood, known for being pest-free and certified under the Phytosanitary Certificate, is exported to India after meeting the requirements of the Bureau of Indian Standards (BIS). Many local plywood industries in the district lack direct BIS certification and export through another certified company, Ganpati Rosin and Turpentine Industry.

Plywood and veneer sheets are considered raw materials. Thin wood sheets are bonded using technology to create plywood, which is highly demanded in India for furniture, partitions, decorative items, and doors/windows. Nepali plywood is mainly exported to Maharashtra, Karnataka, Rajasthan, Jaipur, Bangalore, and Uttar Pradesh. There are currently 7–8 plywood industries operating along the Chandranigahapur–Krishnanagar road section.

“Plywood and veneer exports are increasing every year, contributing significantly to Nepal’s economy,” said Fanindra Khatri, Chief Customs Officer at Krishnanagar.

Cement Exports on the Rise

In the last fiscal year, Samrat Cement and Ghorahi Cement from Dang exported 377 tons of cement worth NPR 750.1 million to India. In the previous year, 596 tons worth NPR 303.8 million were exported. Major Indian buyers, including the Adani Group, are purchasing cement from Dang.

Cement exports also require BIS certification. Nepali trucks transport cement to the customs yard, where it is transferred to Indian trucks for further shipment. The current cement price in India is INR 450 per sack, while Nepal’s export price remains INR 80–100 lower per sack, according to Customs Officer Lekhnath Bhattarai.

Other Major Exports and Imports via Krishnanagar

• Rosin Export: 1,557 tons worth NPR 225.4 million were exported in FY 2081/82, up from 1,337 tons worth NPR 172.5 million the previous year.
• Clinker Export: 25,090 tons worth NPR 139.8 million exported for cement production.
• Turpentine Oil Export: 274,000 liters worth NPR 52.3 million exported.
• Herbal Oil Export: 2,600 liters worth NPR 38.7 million exported.
• Wooden Doors & Windows Export: 16,675 units worth NPR 21.2 million exported.
• Herbs Export: 115,000 kg worth NPR 8.4 million exported.

Meanwhile, on the import side, malt (fermented barley) worth NPR 1.97 billion and beer bottles worth NPR 1.87 billion were imported over the last two years for beer production.

Krishnanagar Emerging as a Trade Hub

Krishnanagar is now a major hub for both exports and imports, with beer production materials ranking fourth and fifth in revenue collection, respectively. Its proximity to India’s national railway network and easy access to major Indian cities has made it a preferred route for trade.

“Krishnanagar is becoming a central hub for Nepal–India trade due to better road connectivity and efficient customs processes,” said Ritesh Sharma, President of the Krishnanagar Chamber of Commerce and Industry.

Historical Trade Shift: From Imports to Exports

A decade ago, Nepal imported most of its plywood from India. However, with the establishment of domestic industries, the trend has reversed. Nepal now exports large volumes of plywood, generating valuable foreign currency.

“The demand for wood-based products in India has been steadily increasing, and Nepal is now earning significant foreign exchange through plywood exports,” said Ruk Bahadur Bhusal, President of the Forest Products Business Federation, Lumbini Province.