The government had included 12 goods and seven services with export potentials in the NTIS document that it introduced in 2010 to promote domestic production and international trade. Since then, it has been allocating budget to each product and service to increase their production and promote exports.[break]
However, the government managed to achieve only around 11 percent annual growth in export of these products and services over the period.
Data compiled by Trade and Export Promotion Center (TEPC) shows exports of 12 goods listed in NTIS increased by 11 percent to Rs 26.85 billion during fiscal year 2012/13 compared to the figures of 2011/12.
According to the data, Nepal exported essential oil worth Rs 87 million, noodles worth Rs 601.30 million and natural honey worth mere Rs 21,000 during 2012/13. Similarly, exports of Nepali paper, woolen products and silver articles were limited to Rs 549.86 million, Rs 427.83 million and Rs 194.11 million, respectively. Exports of noodles, natural honey, Nepali paper, woolen products and articles were down during the review year.
However, exports of black cardamom, lentils, tea, medicinal herbs, ginger, iron and steel and pashmina were well over the target set by the government. According to the data, exports of black cardamom, lentils and tea increased to Rs 3.84 billion, Rs 2.67 billion and Rs 2.04 billion, respectively. Similarly, Nepal exported medicinal herbs, ginger, and iron and steel amounting to Rs 1.27 billion, Rs 1.33 billion and Rs 11.63 billion respectively during the year. Pashmina products worth Rs 2.17 billion were exported during the review year.
In line with the government´s Immediate Action Plan for Governance and Economic Reform, the Ministry of Commerce and Supplies (MoCS) had approved an action plan in November last year to promote exports of NTIS products. As per the action plan, the government has announced to increase the export volume of those products to more than one billion rupees each annually.
The government has already decided to introduce direct involvement of three ministries - agriculture, forest and industry - in the NTIS program and forge proper coordination among them for effective implementation of the program.
Officials at the MoCS have been pointing out lack of coordination among line ministries behind slow progress in the promotion of NTIS.
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