Veneer & ply board worth Rs 5 billion exported from eastern border customs point

JHAPA: The export of veneer and plywood has played a significant role in foreign currency earnings and reducing the trade deficit of Nepal.

Veneer and ply board is produced from the logs of soft-wood trees like Uttis, Kadam, Mauwa and others that grow in the hilly areas.

Veneer sheets and ply board worth Rs 5 million 92 million and 592 thousand was exported through the eastern border customs check post at Kakadbhitta between July 17, 2022 and October 16, 2024, said Rajendra Prasad Chudal, Chief of the Mechi Customs Office.

Veneer sheets are manufactured out of the logs and the ply boards from the veneer sheets. The veneer sheets are directly exported to India.

According to Chudal, veneer sheets worth Rs 736 million and 431 thousand and ply board worth Rs 5 billion 184 million and 161 thousand has been exported to India through the Kakadbhitta customs check point in the last 27 months.

Similarly, veneer sheets worth Rs 147 million and 136 thousand and ply board worth Rs 99 million and 332 thousand was exported to India through Kakarbhitta customs in the first three months of the current fiscal year.

Deepak Pandey, the President of Nepal Veneer Manufacturers Association, said the veneer industries have been making significant contribution in boosting the country’s economy by paying large amount of revenue to the State, reducing the trade deficit by earning foreign currency, increasing the income level of farmers by purchasing the wood of soft-wood trees that are otherwise wasted in the hills and creating employment opportunities within the country.

Pandey said more than 120 veneer industries are in operation in the country at present, directly employing over 8,000 people. The highest number of veneer industries is in operation in Jhapa. There are 38 such industries in the district.

There are 80 plywood industries across the country manufacturing ply board from veneer sheets. The plywood industries have installed more than 100 veneer machines within the industries to become self-sufficient in the supply of 80 percent of the raw materials they require.

Veneer sheets and ply board is exported to India through the customs check posts at Kakadbhitta, Biratnagar and Bhairahawa.

Before this, the veneer sheets and ply board used to be imported from India to meet the demand. But Nepal not only become self-sufficient in veneer and ply board production these days, it has also become a net exported.