Export of iron-made goods to India increases

Himalayan News Service

Birgunj, May 16:

Export of iron-made goods like pipe and zinc to India has increased this year in comparison to previous years. This year the export of such goods through Birgunj transit point has gone up almost by 60 per cent. Until March this year, 33, 533 metric tonnes of the iron products have been exported to India while in the fiscal year 2003-04, only 20, 888 metric tonnes were exported to India. Since India has a huge market for iron-made goods, the demand has been increasing, said an iron entrepreneur.

Last year Rajesh Metal and Bhagwati Steels have exported their products to India through Birgunj transit point. But this year Jagdamba Steels has also started to export its products.

However, Hulash Steels Industry, which has been regularly exporting to India, was not allowed to export this year by the Indian government due to lack of its own trade mark.

With the increment in iron-made exports, the price of the iron-made goods has also gone up in the local market. Until March last year, the goods like iron-pipes and zinc of worth Rs 579, 545, 000 were exported to India while during this fiscal year the goods worth Rs 1129, 329, 000 has already been exported to India.

Along with the increment in price of raw materials, the price of the products has also gone up, said the entrepreneurs. The price of raw material of iron HR coal has been increased by 60 per cent. After Nepal-India trade treaty in 1996, the export of such goods has been improved. But at the time of renewing the treaty, the Indian government has raised concern over the negative impact of such exports to its local iron industry, which has cut down the export drastically. Although there is a huge demand of iron-made pipes and zinc in India, due to uneven playing field, there is not much profit at present, said Bishnu Agrawal of Rajesh Metal Industry.