Nepal's export relies on goods of imported raw materials

Kathmandu, Oct. 28

Export trade of Nepal in the first quarter of the current Fiscal Year 2021/22 has gone up by about 110 per cent compared to the same period last year.

It exported goods worth Rs. 65.05 billion in the first three months of this year while the export trade last year was worth Rs. 31.04 billion, according to the statistics of the Department of Customs (DoC). This is a significant growth compared to the data of the last several years. The export trade of Nepal had crossed the Rs. 100 billion mark in the last fiscal due to the high export of soybean oil.

This year too, soybean has lifted the trade with the export of 98,007 tonnes worth Rs. 22.02 billion. Other major exports are, palm oil, carpets and textiles, sunflower seed and oil, felt and cardamom.

Nepal exported palm oil worth Rs. 13.45 billion in the first quarter, carpets and textiles of Rs. 2.45 billion, sunflower seeds of 1.82 billion and felt 1.65 billion.

Palm oil was the highest exported commodity in the couple of years prior to the last fiscal. Raw materials for palm oil and soybean oil are not produced enough in Nepal. These exports are based on the imported raw materials and their exports depend on the Indian policy to import them.

Likewise, Nepal imported goods worth Rs. 478.5 billion which is 63.73 per cent larger compared to the last year when it brought in goods worth Rs. 292.2 billion. This sudden growth in the import has created pressure on the balance of payment.

Largest imports of the country are dominated by the fossil fuel, soybean oil, cellphones  and palm oil. Nepal imported diesel and petrol worth Rs. 23.3 billion, crude soybean oil Rs. 20.6 billion, mobile sets Rs. 17.17 billion, crude palm oil Rs. 13.04 billion and petrol Rs. 12.86 billion.

Likewise, it imported Liquefied Petroleum Gas (LPG) worth Rs. 12.18 billion, gold worth Rs. 11 billion and silver Rs. 10.17 billion was imported.

However, the highest revenue is raised from diesel, petrol, vehicle, motorcycles, mobile phones  and LPG.

With significant growth in the export trade the import-export ratio has come down to 7.36 in the three months this year from last year's 9.41 ratio. Exports' share in the trade has increased by 11.97 per cent in this period which is a significant growth from 9.60 per cent last year.

 Published in The Rising Nepal daily on 29 October 2021.