As a result, Nepal´s exports for the period landed to about Rs 16 billion, says the latest Nepal Ratsra Bank (NRB) report. Nepal´s exports in the same period last year was well over Rs 19 billion.
Of the total exports, export to India alone declined by 11.4 percent to Rs 9.22 billion during the period. Concerned business attributed the drop to imposition of countervailing duty by India, which affected exports of readymade garments, and also standards related and non-tariff barriers.
Exports to other countries too plummeted by more than 23 percent to Rs 6.7 billion, as export of pulses, the largest exports recorded for the period, dropped and woolen carpets, readymade garments and tanned skin failed to retain markets amid eroding competitiveness.
Country´s imports, however, soared by more than 30 percent and touched Rs 89.71 billion during the period. Nepal mainly recorded a sharp rise in imports of MS wire rod, sanitary wares and insecticides from India and gold, electrical goods, crude soybean oil and medicines, which shot up import of goods from India by over 25 percent and from third countries by 37 percent.
As a result of sharp rise in imports compared to exports, country´s trade deficit widened by more than 48 percent to touch Rs 73.33 billion.
The central bank has attributed the rising trade deficit to increased consumption on the back of soaring remittances inflow and also poor performances of key industries in India and US markets.
According to the central bank, the country received over Rs 51 billion as remittances from Nepalis working abroad, up 11 percent over what was received in the same period last year. The report further notes that inflation moderated 9.3 percent in mid-October as against 14.1 percent in the same period last year.
Still the prices of food and beverages rose by 15.6 percent during the period. Of the food items, prices of sugar and sugar-related products soared by a whopping 42 percent, prices of vegetables and fruits increased by 37.5 percent and the prices of pulses increased by over 25 percent.
Related story
Groundwater for food security
