Export of key products up despite border obstruction

KATHAMNDU, Dec 12: Despite unrest in Tarai district and border obstructions, export of five major commodities posted growth in the first four months of Fiscal Year 2015/16.

Export figures of four months ending mid-November compiled by Trade and Export Promotion Center (TEPC) show export of Cardamom increased by a whopping 91.7 percent to Rs 1.31 billion. Similarly, export of handicrafts (painting and sculptures) grew by 65 percent to Rs 357 million. Likewise, export of hand knitted carpet increased by 13.9 percent to Rs 2.78 billion, and headgear and parts thereof went up by 13.3 percent to Rs 43.8 million while export of ginger grew by 10 percent to Rs 159 million.

Cardamom is one of Nepal's high-value products. It is in high demand in India. Such is the demand of Nepali cardamom in the southern neighbor reach cardamom farms itself to negotiate price with farmers.

“Export of handicraft products has increased by 65 percent to Rs 357 million. It is a huge growth,” Suyesh Khanal, information officer of TEPC, told Republica.

Despite this, country's overall export fell by 30.5 percent. Similarly, import also fell by 38.3 percent, largely due to Tarai unrest and border obstructions.

“Export to China remained almost zero as both trade routes to Tibet remained shut completely after the April earthquake. However, export of agricultural products to India wasn't affected at all,” added Khanal. “Export via aerial route increased remarkably in the review period as land routes were disturbed because of the border obstructions.”

TEPC officials say several local products, like honey, have substituted imports in the review period.

Export of iron and steel products fell by a massive 60 percent to Rs 1.6 billion, as many industries stopped or scaled down production as their raw materials remained stuck at border points because of the blockade. Similarly, export of yarn fell by 34.1 percent to Rs 1.44 billion. Export of woolen and pashmina products grew by 1.6 percent to Rs 106 billion, while felt exports grew by 5.7 percent to Rs 488 billion. According to TEPC, export of readymade garment also increased by 2.5 percent to Rs 2.18 billion.

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