By A Staff Reporter
Kathmandu, Mar. 29: The country's overall export posted a growth, but the export of major exportable products as yarns, readymade garments and carpets declined significantly during the first eight months of the current fiscal year.
The export of yarns and readymade garments went down by 14.4 per cent and 11.8 per cent to Rs. 5.10 billion and Rs. 3.78 billion respectively during the review period.
Likewise, export of carpet decreased by 3.11 per cent to Rs. 4.74 billion during the review period, according to the trade statistics of the Trade and Export Promotion Centre.
The country exported yarns worth Rs. 5.96 billion, readymade garments worth Rs. 4.26 billion and carpets worth Rs. 4.90 billion in the corresponding period last year.
Export of juice went down by 5.34 cent to Rs. 2.38 billion and iron and steel decreased by 28.42 per cent to Rs. 1.66 billion during the first eight months of the current fiscal year.
The share of yarns to the total export trade stands at 6.32 per cent and of carpets and garments at 5.88 per cent and 4.68 per cent respectively.
The country’s export has increased by 7.5 per cent to Rs. 74.91 billion during the first eight months of the current fiscal year.
The significant increase in the export of soybean oil contributed to the increase in overall export event though the export of major exportable products declined during the review period, said Sarad Bickram Rana, executive director of TEPC.
The export of soybean oil increased by 207.47 per cent to Rs. 23.12 billion during the eight months of the current fiscal year.
Export of woolen pashmina shawls went up by 33.63 per cent to Rs. 1.85 billion, and tea by 61.97 per cent to Rs. 2.74 billion during the review period.
The export of major products has declined this fiscal year due to the COVID-19 as many industries have not come into operation yet, he said.
“We have to pay attention to the operation of industries to increase export in the days to come,” he said.
He said that the supply side constraint was a challenge to increase the export of local products, including readymade garments, carpets and pashmina shawls.
“We are not able to supply as per the requirement of the international buyers due to low production. So, the private sector should enhance their capacity to increase production to contribute to the growth of export,” he said.
Chandi Prasad Aryal, an exporter and president of Garment Association of Nepal, said that the export of garments and other products has been affected due to the impact of COVID-19 as international buyers are not interested in orders because of the fear of COVID-19.
He, however, said that the demand for garments and carpets is growing lately in the international market which has created rays of hope among the exporters and producers.
“Despite decline in exports, we have to be positive about the present status of export as many industries are still closed due to the impact of COVID-19,” he said.
He said that it was not possible to increase the country’s export of local products until and unless a new export policy was introduced by the government.
The foreign countries are providing double digit incentives to the exporters that help increase those countries’ export, he said adding that Nepal’s export had not gone up as expected due to lack of appropriate cash incentives on export.
Aryal stressed on the need of promoting the production of raw materials required for garments, carpets and other products which help reduce the cost of production and would end the dependency on the foreign countries for raw materials.
He said that carpet and garment producers have been unable to import raw materials from India and other countries which had been affecting the production and export as well.