In the first month of the current fiscal year, Nepal’s export trade witnessed a sharp rise. Total merchandise exports increased by 95.7 percent, reaching Rs 23.93 billion. In the same period last year, exports had actually declined by 9.6 percent.
By destination, exports to India rose by 156.7 percent, while exports to China and other countries dropped by 65.2 percent and 1.4 percent, respectively.
On a commodity basis, exports of soybean oil, palm oil, polyester yarn, cardamom, and jute products grew significantly. In contrast, exports of zinc sheets, particle boards, woolen carpets, foam, and tea decreased.
Meanwhile, Nepal’s trade deficit in the review period amounted to Rs 119.11 billion, according to data published by Nepal Rastra Bank. This represents a 2.5 percent increase compared to the same period last year, when the trade deficit had grown by only 0.4 percent.
Total imports in the first month (mid-July to mid-August) rose by 11.4 percent, reaching Rs 143.04 billion. During the same period last year, imports had decreased by 0.6 percent.
By source country, imports from India, China, and other countries grew by 7.5 percent, 14.1 percent, and 20.5 percent, respectively.
On a commodity level, imports of crude soybean oil, transport equipment, vehicles and spare parts, rice/paddy, coal, and chemical fertilizers increased. However, imports of hot-rolled sheets in coil, edible oil, petroleum products, other machinery and parts, and oilseeds declined.
The export-to-import ratio improved to 16.7 percent in the review period, compared to 9.5 percent a year earlier. During the same period, imports worth Rs 13.43 billion were made from India by paying in convertible foreign currency, slightly lower than Rs 13.98 billion in the previous year.
