Exports tumble as do imports

By A Staff Reporter

Kathmandu, Nov.1: The improvement seen in the country's export trade for the past few years has started to decline again since the beginning of the current fiscal year 2022/23.

According to trade statistics of the Department of Customs, the country's export has declined by 35.71 per cent during the first three months of the current fiscal year compared to the same period of last fiscal year 2021/22.

Goods worth Rs. 41.82 billion have been exported in the first three months of the current fiscal year while they were worth Rs. 65.052 billion in the same period of last fiscal year.

The export trade of the country has started to decline right from the first month of the current fiscal year as compared to the same period of the previous fiscal year owing to a significant drop in the export of soybean oil.

According to experts, the overall export trade of the country has declined over the months due to the decline in the export of soybean oil and palm oil which has been contributing significantly to export.

Due to the ongoing Russia and Ukraine war, there was a problem in the supply chain of edible oil, including soybean oil, in the international market which affected the import of crude oil and export of refined oil in Nepal as well.

Soybean oil export drops drastically

Soybean oil worth Rs. 3.16 billion has been exported during the first three months of the current fiscal year while it was Rs. 22.02 billion in the same period last fiscal year.  

Palm oil worth Rs. 8.05 billion and sunflower worth Rs. 156 million have been exported during the review period. The country exported palm oil worth Rs. 13.51 billion and sunflower oil worth Rs. 1.82 billion during the first three months of the last fiscal year 2021/22.

Meanwhile, crude soybean oil worth Rs. 14.08 billion, crude palm oil worth Rs. 11.18 billion and sunflower oil worth Rs. 3.48 billion have been imported during the review period.

The crude soybean oil worth Rs. 20.61 billion, palm oil worth Rs. 13.34 billion and sunflower oil worth Rs. 5.88 billion were imported during the first three months of the last fiscal year 2021/22.

Entrepreneurs in Nepal have been importing crude soybean oil from different countries, processing it and re-exporting it.

During the review period, not only exports but also imports have decreased.

Imports have decreased by 16.20 per cent during the first three months of the current fiscal year. Goods worth Rs. 400.99 billion were imported in the review period. The country imported goods worth Rs. 478.52 billion in the same period last fiscal year.

Due to the measures taken by the government in import of luxury items to keep the foreign currency reserves in sound state, the import has been reduced which contributed to narrowing the trade imbalance and reduced overall foreign trade.

The government has banned the import of all kinds of ready-made liquors except raw materials, vehicles (jeeps, cars and vans (except ambulances and hearses) and motorcycles with a capacity of more than 150cc.

Due to the increase in the price of petroleum products in the international market, the import of petroleum products has increased significantly during the review period.

In the first three months of the current fiscal year, petrol worth Rs. 18.22 billion, diesel worth Rs. 29.29 billion, kerosene worth Rs. 315 million, aviation fuel worth Rs. 5.15 billion and liquefied petroleum gas worth Rs. 14.94 billion have been imported.

Meanwhile, maize worth Rs. 3.40 billion, paddy and rice worth Rs. 5.60 billion and wheat worth Rs. 48 million have been imported.

Trade imbalance shrinks

Decline in both exports and imports has contributed to a fall in foreign trade during the review period.

The country's foreign trade has decreased significantly during the first three months of the current fiscal year 2022/23.

According to the Department of Customs, foreign trade has decreased by 18.54 per cent to Rs. 442.81 billion during the first three months of the current fiscal year.

Owing to declines in export and import, there was some improvement in the overall trade deficit in the first three months of the current fiscal year.

The country faces a trade deficit of Rs. 359.17 billion. This trade deficit is 13.13 percentage points less than the same period last year.