Lockdown Affects Import-Export, Trade Deficit At Rs 943 Billion

May 26, 2020 | Investopaper

Corona virus and lockdown have shrunk exports along with imports. According to the 10-month data released by the customs department, import trade has declined by 13 percent. Although exports increased by 4.5 percent, they have declined significantly compared to the previous two months.

As per the statistics, goods worth Rs 1.178 trillion had arrived in the first ten months of last year. It has declined by 12.99 percent to Rs. 1.025 trillion in the corresponding period of the previous year. Exports stood at Rs 82 billion in the corresponding period of the current fiscal year compared to Rs 78 billion in the same period of the previous year. Exports have shrunk in the last two months.

Foreign trade during the period stood at Rs 1.107 trillion. According to the department, the trade deficit is Rs. 943 billion. There has not been much export / import trade in the last two months. The overall business is sluggish after the government cracked down on the corona infection.

Import of goods other than essentials is not easy. Banks, customs offices and ports are understaffed. Entrepreneurs say that there are more problems when vehicles and shops are not opened along with the vehicles. Essential goods worth Rs 66 billion were imported in the two months of the lockdown. The highest import of diesel is Rs 75 billion. In the second, MS billet (raw material for rod) is worth Rs 35 billion. Rs 27 billion has been spent on cooking LP gas, Rs 25 billion on petrol and Rs 21 billion on readymade garments.

During this period, most of the refined palm oil was exported. This oil export was worth Rs 18 billion in 10 months. This oil export has been stopped again since last Baisakh 29. According to department officials, India’s ban on palm oil, which is number one in exports, will affect the overall export trade. Soybean oil is the second most exported commodity. The oil exports during the period stood at Rs 8 billion.

Top 5 Items Imported / Exported (In rupees)

Import Amount (Rs.) Export Amount (Rs.)
Diesel 75 billion Palm oil 18 billion
MS billet  35 billion Soybean oil 8 billion
Gas  27 billion Thread 6 billion
Petrol 25 billion Carpet 5 billion
Readymade garments  21 billion Ready-made garments  4 billion

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