KATHMANDU: Exports have shrunk 8 percent during the first eight months of the current fiscal year largely due to a fall in shipments to India, the Trade and Export Promotion Centre (TEPC) said in a report.
Overall exports to India dropped 9.6 percent to Rs36.55 billion with a decline in the export of a majority of export goods. The southern neighbour absorbs two-thirds of Nepal’s exports, and a decline in this market is quickly reflected in the country’s entire export performance. Meanwhile, imports from India rose 3.2 percent to Rs319 billion further bloating the trade deficit.
Nepal sends agro products and a number of manufactured goods to India. Tea, cardamom , ginger, jute sacks and related products, juices, medicinal herbs, vegetable fats and oil and toothpastes are the major exports. However, the export of almost all these products dropped during the review period.
The biggest fall was seen in the export earnings of vegetable fats and oil. According to the TEPC, income amounted to Rs25.29 million compared to Rs174.84 million during the corresponding period in the previous year.
Cardamom witnessed a fall of 37 percent, the second sharpest drop after vegetable fats and oil. Exports of the product slid to Rs2.10 billion from Rs3.34 billion. Similarly, export earnings from ginger plunged 23.9 percent while jute bags and sacks were down 13.4 percent, medicinal herbs 2.9 percent and cotton sacks and bags 7.8 percent.
Along with farm products, exports of manufactured goods like toothpaste and juices also dropped 15.9 and 6.5 percent respectively. Trade expert Bijendra Man Shakya said the fall in the export of agricultural products could be due to a slump in domestic production besides a rise in output in India.
