State-owned Nepalese Udayapur Cement Industry Ltd (UCIL) has resumed sales of its Gainda Chhap cement following a suspension of more than three months caused by a shortage of packaging bags.
The company secured 53,187 bags after reaching an agreement with its supplier, which had halted deliveries due to NPR3.8m (US$27,000) in unpaid bills. UCIL had run out of bags in late April, leaving clinker equivalent to around 70,000 bags of cement unsold.
The disruption reflects continuing financial difficulties at UCIL. Reports in June indicated that cement and clinker stocks were stranded at the plant because the company lacked funds to purchase packaging, while employees had gone without salaries for more than a year.
