Exports down by 7% in first six months

Kathmandu / Jan. 22: Nepal’s imports and exports both have declined during the first six months of the current fiscal year 2023/24. According to trade statistics made public by the Department of Customs Sunday, the country’s export has declined by 7.23 per cent while the import decreased by 3.09 per cent during the first six months of the current fiscal year compared to the same period of last fiscal year 2022/23.

Goods worth Rs. 74.96 billion have been exported during the review period of the current fiscal year while the trade volume was Rs. 80.80 billion in the same period of last fiscal year. The reduction in the export of major exportable goods, including soybean oil and palm oil, resulted in decline in the overall export during the review period.

The country has exported soybean oil only worth Rs. 415 million in the first six months of the current fiscal year while soybean oil worth Rs. 8 billion had been exported in the corresponding period last fiscal year. Similarly, palm oil worth Rs. 2.90 billion has been exported in the review period while it was worth Rs. 13.08 billion during the first six months of the last fiscal year.

The export of sunflower oil has also dropped to Rs. 148 million during the review period as compared to the same period last fiscal year. During the review period, tea and coffee worth Rs. 2.17 billion, yarn worth Rs. 5.6 billion, carpet worth Rs. 6 billion and cardamom worth Rs. 3.9 billion had been exported.

Similarly, ginger worth Rs. 942 million, yarchhagumba worth Rs. 584 million, fruits juice worth Rs. 3.8 billion and pickles worth Rs. 67 million have been exported during the six months of the current fiscal year.

Increased cement export

The export of cement and clinker has increased significantly during the review period as compared to the same period last fiscal year. The country exported cement and clinker worth Rs. 1.76 billion in the first six months of the current fiscal year.

The cement and clinker only worth Rs. 86 million had been exported during the first six months of the last fiscal year. During the review period, imports have decreased by 3.09 per cent during the review period of the current fiscal year. Goods worth Rs. 768.16 billion were imported in the review period.

The country imported goods worth Rs. 792.66 billion in the same period last fiscal year. The crude palm oil worth Rs. 7.55 billion, crude soybean oil worth Rs. 7.8 billion and sunflower oil worth Rs. 7.78 billion have been imported during the review period.

In the first six months of the current fiscal year, petrol worth Rs. 33.19 billion, diesel worth Rs. 66.49 billion, aviation fuel worth Rs. 10.12 billion and liquefied petroleum gas worth Rs. 25.45 billion have been imported.

Similarly, the country has imported maize worth Rs. 6.63 billion, paddy and rice worth Rs. 10.14 billion and wheat worth Rs. 5 billion. During the review period as compared to last year, the import of electric vehicles has increased significantly. About 6,000 electric vehicles, including car, jeeps, vans, bus and trucks worth Rs. 14 billion have been imported during the review period.

Similarly, electric three-wheelers worth Rs. 510 million have been imported during the review period.Trade deficit drops

Decline in both exports and imports have contributed to a fall in foreign trade during the review period. The country’s foreign trade has decreased significantly during the first six months of the current fiscal year 2023/24.

According to the Department of Customs, foreign trade has decreased by 3.47 per cent to Rs. 843.13 billion during the first six months of the current fiscal year.

Owing to declines in export as well as import, there was some improvement in the overall trade deficit during the review period of the current fiscal year as compared to the same period last fiscal year.

The country faces a trade deficit of Rs. 693.19 billion. It is 2.62 per cent less than the same period last year. The country had faced a trade deficit of Rs. 711.85 billion during the first six months of the last fiscal year.