According to the report, the average capacity utilization of industries in the Madhesh Province improved in the last fiscal year mainly due to the resumption of full operation of many industries resumed operation following the decline in Covid-19 pandemic cases, the surge in the demands, and ease in the supply of raw materials.
The report states that industries producing fabricated metal goods had the highest capacity utilization of 94.72 percent, and the paper industry had the lowest capacity utilization of 10.79 percent. According to NRB, the five industries with the highest capacity utilization in the last fiscal year were fabricated metal goods, beverages, grain and animal feed, tobacco products, and plastic goods manufacturing. In FY 2021/22, the average capacity utilization of fabricated metal goods industries, beverages industries, grain and animal feed industries, tobacco products industries, and plastic manufacturing industries stood at 94.72 percent, 92.08 percent, 91.68 percent, 86.46 percent, and 71.20 percent, respectively. The industries that saw their average capacity utilization decline in the last fiscal year were the producers of vegetable ghee and oil, other food items and cloth. The capacity utilization of vegetable ghee and oil industries decreased by 5.29 percent, cloth industries by 14.76 percent, and other food items industries by 28.35 percent respectively in FY 2021/22. In FY 2020/21, the five industries with the highest capacity utilization in Madhesh Province were textiles, beverages, fabricated metal goods, grain and animal feed, and plastic manufacturing industries, whose capacity utilization was 84.70 percent, 71.77 percent, 65.23 percent, 59.83 percent, and 58.84 percent respectively. Leather goods, and beverages production increased According to the report, In FY 2021/22, the production of the leather and leather goods manufacturing industry increased the most by 51.51 percent, while the production of the plastic manufacturing industry decreased the most by 39.50 percent. The top five industries having higher growth in production in FY 2021/22 were leather and leather goods, beverages, fabricated metal goods, other food products, and paper and paper materials manufacturing. The production growth of leather and leather goods industries stood at 51.51 percent, beverages industries at 41.24 percent, fabricated metal goods at 13 .78 percent, other food products at 10.80 percent, and paper and paper materials manufacturing industries at 10.28 percent. In FY 2021/22, the production of industries producing tobacco products, ghee and oil, grain and animal feed, and plastic products has decreased by 9.45 percent, 11.01 percent, 13.78 percent, and 39.50 percent respectively. BFIs industrial loans to industries decline in last FY According to NRB, the total credit flow from banks and financial institutions (BFIs) to the industries in Madhesh Province has shrunk by 2.94 percent in the last fiscal year. The BFIs disbursed industrial loans worth Rs 102.13 million in FY 2021/22 compared to Rs 105.23 billion in FY 2020/21. The highest loan disbursement was in the Parsa district and the lowest was in the Saptari district. Of the total loan disbursed, 56.95 percent was for the industries in the Parsa district. As most of the industries in Madhesh are based in Parsa, the loan disbursement in the district is the highest. Majority of loans went to non-food production industry Of the total loans disbursed by the BFIs to industries in the last fiscal year, 52.39 percent was for non-food production industry, 30.57 percent for agriculture-forestry and beverage production industry, 7.62 percent for production of metal, machinery and electronics and metal goods industry, 7.27 percent for construction industry, 1.66 percent for mining industry, and 0.48 percent for electricity, gas and water industry.
