Imports of gold, silver, energy drinks, alcohol, tobacco and cosmetics, among others grew significantly during the review period compared to last fiscal year.
Data compiled by Trade and Export Promotion Center (TEPC) shows country´s gold and silver import soared by 23.4 percent to Rs 23.79 billion during the review period. Gold import alone increased by 5.7 percent to Rs 17.14 billion.[break]
The government had raised customs duty on gold by Rs 700 per 10 grams in January in a bid to check possible smuggling to India after the southern neighbor increased duty on gold to Rs 2,880 per 10 grams.
Gold and silver combined became country´s third largest import after petroleum and iron & steel products during the review period.
In a bid to check widening trade deficit, the government has been limiting gold imports to 15 kg a day since 2010/11. The government took the step after gold import rose to over Rs 41 billion in 2009/10 leading to steep rise in trade deficit and sharp drop in foreign currency reserve.
Similarly, the country imported cosmetic products worth Rs 2.41 billion in the review period, up by 27.3 percent compared to figures of the same period of the last fiscal year. Alcohol import also increased by 41.8 percent to Rs 1.18 billion, while tobacco import soared by 7 percent to Rs 1.41 billion. Import of energy drinks also increased by 40.8 percent to Rs 550 million during the review period.
However, export of prioritized products like natural honey, articles of silver jewelry and woolen products, which are among the 19 products included in Nepal Trade Integration Strategies (NTIS), dropped during the review period.
Export of woolen products, declined by 21 percent to Rs 307 million during the period. Similarly, exports of articles of silver jewelry and natural honey fell by 42 percent and 97.5 percent, respectively to Rs 99.4 million and Rs 5,000.
Luxury Goods Import
Gold & sliver Rs 23.79 billion
Cosmetics Rs 2.41 billion
Tobacco Rs 1.41 billion
Alcohol Rs 1.18 billion
Energy drinks Rs 550 million
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