New Delhi, April 17:

Following the request from Nepali industry, India is considering to lift the restriction on export of cement and clinker, the raw material used for cement.

The Indian Foreign Trade Directorate had slapped a ban on the export of cement and clinker to all neighbouring countries including Nepal on April 11 after the directive from the Indian Union Ministry of Commerce and Supplies.

The ban was imposed on the basis of trade-related Indian laws formulated in 1992 and India’s foreign trade policy of 2004-2009 to protect the country’s foreign exchange reserves.

The decision was taken after the price of cement escalated in India and prices of other consumer items also increased pushing the inflation up. To curb the high inflation India has also drastically cut down the volume of export of items like paddy, rice and wheat.

When cement and clinker stopped coming to Nepal seven days ago, cement producers approached the Indian Embassy in Kathmandu. They urged the Indian government to reconsider its decision.

After the Indian Mission in Kathmandu forwarded the Nepali business fraternity’s appeal to Indian government, India’s foreign ministry intervened and told the commerce ministry that under the special terms of the Indo-Nepal trade treaty Nepal should ideally be exempted from the ban.