Trade deficit rises to Rs 398.52b

KATHMANDU, April:

Nepal suffered trade deficit of Rs 398.52 million in the first eight months of fiscal year 2013/14, up by 17.8 percent compared to figures of the same period in the last fiscal year.

The country imported goods and services worth Rs 459.5 billion during the first eight months of 2013/14. It exported goods and services worth Rs 60.98 billion - a rise of 20.3 percent compared to the same period of last year - during the review period, according to Trade and Export Promotion Center (TEPC).

Petroleum products, iron and steel products, automobile and auto parts, telecommunication and electronic equipments, and gold were the country´s main imports during the review period. Import of petroleum products increased by 24.8 percent to Rs 87.88 billion. Similarly, the country imported iron and steel products worth Rs 40 billion in the eight-month period. Nepal imported automobiles and auto parts worth Rs 26.61 billion during the review period.

Country´s gold import fell by 0.4 percent during the eight-month period ending mid-March. In the same period last year, Nepal had imported gold worth Rs 17.08 billion.

Likewise, country´s export grew during the period due to strong performance of commodities like iron and steel products, woolen carpet, yarns, textiles, and readymade garments (RMGs). Export of RMGs grew by 52.8 percent to Rs 3.62 billion. Iron and steel products was the country´s top export commodity during the review period. The country exported iron and steel products worth Rs 8.36 billion in the eight-month period.

As usual, India remained the country´s largest trading partner in the review period. While imports from India grew by 18.9 percent to Rs 306.31 billion, Nepal´s exports to the southern neighbor grew by 20.7 percent to Rs 40.48 billion.

Likewise, exports of priority export commodities, listed under Nepal Trade Integration Strategy (NTIS), like cardamom, essential oil, honey, handmade paper, noodles, tea and woolen products improved in the eight-month period compared to last year. Export of silver jewelry, ginger, lentils, medicinal herbs, however, fell by 68 percent, 65 percent, 43.8 percent and 18.7 percent, respectively.

Cardamoms worth Rs 3.34 billion were exported during the period, while exports of pashmina products, tea and lentils fetched Rs 1.47 billion, Rs 1.33 billion and Rs 1.32 billon, respectively.

Source: Republica