Kathmandu, Mar. 20: Both imports and exports have witnessed a decline during the first eight months of the current fiscal year 2023/24.

According to trade statistics made public by the Department of Customs on Tuesday, the country's exports have declined by 3.99 per cent during the first eight months of the current fiscal year compared to the same period of last fiscal year 2022/23.

Goods worth only Rs. 100.61 billion have been exported during the review period of the current fiscal year while the country exported goods worth Rs. 104.79 billion in the corresponding period last fiscal year. 

The country exported goods worth Rs. 157 billion in 2022/23. 

However, Nepal’s export trade had set a historic record in the fiscal year 2021/22. The country exported goods worth Rs. 200.03 billion during that period, a record-high export of Nepal so far. 

The export market has not been encouraging from the beginning of the current fiscal year 2023/24. In the previous years, vegetable oil used to enter India in large quantities from third countries through Nepal. But this year this trade of vegetable oil has come down significantly. 

The reduction in the export of soybean oil and palm oil led to a decline in the overall export during the review period. Export of soybean oil has dropped almost by 91 per cent and palm oil by 69 per cent during the review period as compared to the corresponding period last fiscal year.

The country has exported soybean oil worth only Rs. 754 million in the first eight months of the current fiscal year while soybean oil worth Rs. 8.37 billion was exported in the first eight months of the last fiscal year. 

Similarly, palm oil worth Rs. 4.63 billion has been exported in the first eight months of the current fiscal year while during the same period last fiscal year Nepal exported palm oil worth Rs. 15.18 billion. 

In the meantime, the export of sunflower oil has also decreased to Rs. 148 million during the review period.

During the review period, yarn worth above Rs. 7.5 billion, carpet worth Rs. 8 billion, tea and coffee worth Rs. 2.5 billion and cardamom worth Rs. 5.17 billion have been exported.

Imports of POL products almost doubled of total exports

During the review period, imports have decreased by 2.66 per cent. Goods worth Rs. 1030.22 billion were imported in the review period. The country imported goods worth Rs. 1,058.38 billion in the same period last fiscal year.

In eight months, Nepal has imported petroleum products worth Rs. 184 billion.  The data showed that the total export trade of Nepal is unable to support even the import of petroleum products.

According to the statistics, the country has imported petrol worth Rs. 44.63 billion, diesel worth Rs. 88.88 billion, aviation fuel worth Rs. 13.75 billion, kerosene worth Rs. 761 million and liquefied petroleum gas (LPG) worth Rs. 35.88 billion during the review period.

In the meantime, crude palm oil worth Rs. 10.22 billion, crude soybean oil worth Rs. 9.31 billion and sunflower oil worth Rs. 12.03 billion have been imported during the review period.

The country has spent Rs. 25 billion for the import of cereals, including paddy and rice, wheat, maize and millet during the review period.

Trade imbalance shrinks

Decline in both exports and imports has contributed to a fall in foreign trade during the review period.

The country's foreign trade has decreased significantly during the first four months of the current fiscal year 2023/24.

According to the Department of Customs, foreign trade has decreased by 2.78 per cent to Rs. 1130.84 billion during the first eight months of the current fiscal year.

Owing to declines in exports as well as imports, there was some improvement in the overall trade deficit.

The country faces a trade deficit of Rs. 929.60 billion. The trade deficit is 2.52 per cent less than the same period last year.  

The country faced a trade deficit of Rs. 953.58 billion during the first eight months of the last fiscal year.

During the review period, the ratio of import and export stood at 1: 10.24 while the ratio was 1: 10.10 during the same period in fiscal year 2022/23.   

The contribution of exports and imports to the total trade is 8.90 and 91.10 per cent respectively.