Kavre, Feb. 10 -- Hari Kumar Magar, a handmade paper entrepreneur from Banepa Municipality, was forced to close his business due to dwindling demand. His factory has been shut for over a year and a half, reflecting a broader crisis facing the Nepali handmade paper industry.

Traditionally used by government offices for record-keeping, Nepali handmade paper is now on the verge of collapse with the growing wave of digitisation. Several small paper plants in Kavrepalanchok, once thriving with investments worth millions of rupees, have shut down.

Originally from Sindhuli, Magar founded Kanchan Nepali Paper Factory 14 years ago, aiming to build a successful business. However, with demand plummeting, it became difficult to cover production cos...