Nepal witnesses whopping rise in import in the first month of current fiscal year

KATHMANDU: Import of foreign goods have increased by 9.7 percent in the first month of the current fiscal year 2021-22 compared to the same period of the previous year, as per statistics maintained by the Trade and Export Promotion Center (TEPC).

Nepal’s total foreign trade, in the first month of the ongoing fiscal year, stood at Rs 171.50 billion. While export increased by 115.9 percent to Rs 20.77 billion in the first month of 2021-22, import increased by 75.7 percent to Rs 160.73 billion. Exports and imports accounted for 12.1 percent and 87.9 percent of total trade, respectively.

The TEPC statistics showed that soybean oil, palm oil, polyester and other kind of yarn, woolen carpet, jute and jute products, sunflower oil, readymade clothes, felt products, juice, cardamom, tea, cloth, pashmina shawl, noodles, iron and iron products remained the major exportable products during the period.

Among the highest exported goods, the polyester yarn was on top in the first month this year. As per TEPC, exports of yarn (polyester yarn) have increased to 99.3 percent to Rs 1.10 billion in the first month of the current fiscal year. Similarly, export of soybean oil increased by 295.8 percent to Rs 8.99 Billion. After India resumed palm oil import, Nepal was able to export palm oil worth Rs 2.15 billion during the period.

Meanwhile, export of traditional Nepali woolen carpet increased by 17.3 percent to Rs 801.2 million. Similarly, exports of jute and jute goods increased by 64.2 percent to Rs 797.1 million. While the country exported sunflower oil worth Rs 791.9 million during the period, export of readymade garments increased by 22 percent to Rs 630 million.

In the current fiscal year, export of refined edible oil (soybean oil, palm oil, sunflower oil) contributed 57.7 percent of the total export.

Meanwhile, export of cardamom, a major exportable good from Nepal, declined by 25.1 percent in the first month of this fiscal year to Rs 356.5 million. Similarly, export of tea plummeted by 57.9percent to Rs 33 million. Likewise, export of iron and steel goods came down by 22.7 percent to Rs 148.7 million. Export of herbal goods dropped by 18.6percent, ginger by 0.2 percent, other oils by 28.4 percent and lentils by 22.2 percent during the period.

Export to India, Nepal’s top export destination, increased by 167 percent to Rs 16.87 billion in the first month of 2021-22. Out of total exports to India, Soybean oil, palm oil, sunflower oil contribution has reached to 56.7 percent. United States of America, Germany, Japan, France, Italy, Canada, England, Australia, Turkey, China, Netherland, Denmark, Bangladesh etc are Nepal’s other major export destinations.

In the first month of fiscal year 2021-22. imports of petroleum products increased by 132.9 percent amounting to Rs 16.98 billion. Similarly, import of iron and steel and their products increased by 115.2 percent amounting to Rs 16.62 billion while import of machinery and their parts increased by 89.3 percent to Rs 10.84 billion. Likewise, import of vehicles and their spare parts increased by 123.8 percent to Rs 10.15 billion, electric and imports electronic goods by 96.4 percent to Rs 6.11 billion, cereals by 9.3 percent to Rs6.71 billion, readymade garments by 31.5 percent to Rs 2.48 billion.

Meanwhile, imports of medicines increased by 69.8 percent to Rs 3.20 billion. Imports of crude soybean oil increased by 225.1 percent to Rs 8.32 billion while that of telecommunication equipment increased by 26.7 percent to Rs 6.12 billion.

As per TEPC, the increase in imports of products for physical infrastructures materials such as iron, steel aluminum has contributed positively to the development of the country. Imports of raw materials such as crude palm oil, crude sunflower oil, crude soybean oil polythene granules rubber and chemicals, which are essential for the country, have increased significantly.