Nepal Biscuit Producers Association Welcomes Government’s Tightened Border Controls
April 20, Kathmandu – The Nepal Biscuit Producers Association has welcomed the government’s recent tightening of border controls aimed at curbing illegal imports through customs evasion. In an official statement, the association expressed confidence that this government action will protect domestic industries, revive closed factories, and strengthen the national economy.
According to data provided by the association, there are currently 40 biscuit factories established in Nepal. However, illegal imports of foreign biscuits have adversely affected local producers, leading to 23 factories being completely shut down while only 17 remain operational.
The annual total turnover of the domestic biscuit industry is approximately NPR 15 billion. Nevertheless, the association estimates that more than NPR 6 billion worth of biscuits enter Nepal illegally every year without paying customs duties. “Although raw materials are imported with proper taxes paid, the unauthorized entry of finished biscuits through customs evasion places additional pressure on domestic manufacturers,” the statement noted. “In this context, strict border management, reduced tax evasion, and adherence to regulations in material imports represent positive steps for industry, employment, and revenue generation alike.”
Producers claim that if the government fully stops illegal imports through stringent border enforcement, there will be significant growth in both state revenue and domestic employment. The association reports that the Nepali biscuit industry currently provides direct employment to 10,000 individuals and indirectly supports 100,000 people, including around 150,000 farmers connected to the sector. Should illegal imports be eliminated, direct tax contributions, currently around NPR 2 billion, are expected to rise to NPR 3 billion, alongside the creation of over 5,000 new jobs.
Recalling previous periods when similar enforcement measures led to increased biscuit demand and the reopening of closed factories, the association has urged the government to make this policy sustainable and long-term rather than temporary. Additionally, the association warmly welcomed the government’s new rule mandating the mandatory display of maximum retail prices and the issuance of official bills for all imported goods distributed across Nepal.
“First preference must be given to Nepali products,” the association appealed to both consumers and traders. It requested retail merchants to cultivate a culture of stocking domestic goods first before legally importing and selling products after paying taxes. “Buying Nepali products is not merely a transaction; it is a step to safeguard employment, support farmers, sustain industries, and promote national self-reliance,” the statement concluded.