Although India has briefly reopened the export of footwear, sanitary pads, and diapers—extending the deadline for manufacturers to obtain or renew Bureau of Indian Standard (BIS) certificates—Nepali manufacturers report that their goods remain stranded.

Following discussions during the Nepal-India Inter-Governmental Committee (IGC) meeting on Trade, Transit, and Cooperation to Combat Unauthorised Trade, held in Kathmandu in January, India agreed to expedite the issuance and renewal of BIS certificates.

This was meant to facilitate the export of Nepali goods, including footwear, plywood, yarn, sanitary pads, diapers, cement, corrugated sheets, and steel products.

However, manufacturers claim that the export of footwear, plywood, sanitary pads, diapers, and cement remains halted.

The export of sanitary pads and diapers was temporarily allowed for three months from late January.

Dol Raj Adhikari, president of the Nepal Sanitary and Diaper Association, said that shipments containing sanitary pads and diapers have been stuck at customs. “Our products have been unable to enter the Indian market for over six months,” he said.

“We dispatched our products after hearing that India had allowed imports, but trucks carrying the goods were halted at the Biratnagar and Bhairahawa customs checkpoints and were subsequently sent back,” Adhikari added.

He noted that Indian officials have yet to conduct factory inspections before issuing or renewing BIS certificates.

Manufacturers of sanitary pads and diapers import most of their raw materials from China and other countries. According to the association, factories operate only four hours daily due to export restrictions. More than Rs1 billion worth of sanitary pads and diapers are stranded in manufacturers' warehouses.

Despite having sufficient raw materials, producers are unable to export their goods.

According to the Department of Customs, sanitary pad exports dropped 59.98 percent to Rs114.38 million in the first eight months of the current fiscal year until mid-March. Nepal exported 40 million sanitary pads to India during this period.

In 2020, the Indian government mandated BIS certification for imported goods to align with international quality norms. This move aimed to curb Chinese goods from entering India via neighbouring countries.

Additionally, India imposed import restrictions on more than 370 Chinese products following the ban on Chinese apps.

Industry insiders claim that India is reluctant to accept products from Nepal that contain Chinese components, including Nepal’s hydroelectricity, which is a growing concern for Nepali exporters.

India remains Nepal’s largest export destination, with Nepal selling goods worth Rs103.17 billion in the last fiscal year, which ended in mid-July.

Ananda Kesari Pokhrel, secretariat chief of the Cement Manufacturers Association of Nepal, reported that India has not renewed or issued BIS certificates to many cement manufacturers. “Only those who already had valid certificates have been able to continue exports,” he said.

Due to the BIS certification issue, Nepal’s cement exports have not met expected growth levels.

The country’s Portland cement exports increased by 3.9 percent to Rs1.33 billion in the first eight months of the current fiscal year, with 724,530 tonnes exported to India.

A dozen Nepali cement factories applied for BIS certification in 2022 to qualify for exports, primarily to India.

Gyanendra Prasad Dahal, vice-president of the Footwear Manufacturers Association of Nepal, said that while a few large footwear factories have renewed their BIS certificates, many smaller manufacturers remain unable to export.

The export of Goldstar footwear, which was halted for 4-5 months due to certification issues, resumed in January.

Footwear exports increased 29.53 percent to Rs1.05 billion during the review period, with Nepal shipping 2.9 million pairs of shoes, primarily to India.

Sitaram Agrawal, vice-president of the Nepal Plywood Manufacturers’ Association, said plywood exports had been halted for 11 days due to BIS certification issues. While plywood manufacturers were initially granted certification-free export until March 2025, the export halt occurred before the deadline.

“It’s been over a year since we applied for BIS certification, and we have already spent around Rs1.2 million on the process. However, export uncertainty continues,” Agrawal said.

“We have also paid approximately Rs400,000 to the Indian government in certification fees and even installed labs in our factories for inspections. We have heard that the inspection team has been deployed, but they have yet to arrive.”

Plywood exports increased 26.95 percent to Rs6.64 billion in the first eight months of the current fiscal year, with Nepal shipping 124.99 million cubic meters of the processed wood, mainly to India.

Around 90 percent of the raw materials used in plywood production are sourced domestically while 10 percent are imported from Indonesia and Malaysia.

Manufacturers have raised the issue with relevant authorities in Nepal and India but have not received any response.