Government border crackdown boosts Nepal’s biscuit industry, 5,000 new jobs expected

KATHMANDU: A recent government move to tighten border controls and curb illegal imports has been welcomed by the Nepal Biscuit Producers Association, with industry leaders expressing optimism that the decision will revive the struggling domestic biscuit sector and strengthen Nepal’s production-driven economy.

The association stated that the stricter enforcement at border points and efforts to control unauthorized imports are expected to restore competitiveness in the local market, where domestic manufacturers have long faced pressure from illicit inflows of finished biscuit products.

Industry hit by illegal imports

Biscuit producers in Nepal have been increasingly concerned about declining market share due to illegal imports, particularly from bordering regions. Out of 40 established biscuit industries in the country, only 17 are currently operational, while 23 have shut down.

The sector, which has an annual turnover exceeding NPR 15 billion (1,500 crore), is estimated to suffer losses due to illegal imports worth more than NPR 6 billion (600 crore) annually.

Industry representatives have repeatedly raised concerns that while domestic manufacturers are required to pay taxes on imported raw materials, illegally imported finished biscuits enter the market without taxation, creating an uneven playing field.

Revenue growth and employment potential

According to the association, if illegal imports are fully controlled, the industry could significantly expand its contribution to the national economy. Currently contributing around NPR 2 billion (200 crore) in direct taxes annually, the sector has the potential to increase this figure to NPR 3 billion (300 crore).

More importantly, the crackdown could lead to the creation of over 5,000 new jobs, providing much-needed employment opportunities for Nepali youth.

Past experience reinforces optimism

Industry stakeholders noted that similar government crackdowns in the past had led to a notable increase in demand for domestically produced biscuits. During those periods, several closed factories resumed operations, and government revenue from the sector increased.

Based on that experience, the association has urged the government to ensure that the current policy is not temporary but sustained over the long term.

Support for fair trade and domestic production

The association also welcomed the government’s broader push for fair trade practices, including stricter enforcement of tax compliance and measures to protect domestic industries.

Additionally, it endorsed the rule requiring all imported goods to clearly mention the Maximum Retail Price (MRP) and mandating the issuance of bills during sales, calling it a step toward greater transparency and accountability in the market.

Emphasizing the importance of promoting domestic production, the association called on consumers to prioritize locally produced biscuits and urged traders to give preference to Nepali goods.

“Promoting domestic products means protecting jobs, supporting farmers, and strengthening the national economy,” the association said, expressing confidence that such policy measures will help Nepal move toward greater industrial self-reliance in the coming years.