July 30, 2020 | Investopaper
In the last fiscal year, Nepal has surplus trade with 28 countries. Of the 156 countries that traded imports and exports during the year, Nepal witnessed trade surplus with only 28 countries saw trade profits, according to the customs department.
Nepal Trade Surplus
The biggest gains last year were in trade with Kenya. Kenya-Nepal trade has a profit of Rs 340.3 million. After that, with Algeria, Nepal had a profit of Rs 75.1 million, with Maldives Rs 22 million, with Yemen Rs 18.2 million and with Denmark Rs 17.2 million. Meanwhile, imports from eight countries, including Yemen, New Caledonia, Chad, Burundi, Armenia, East Timor and Bolivia, are zero.
Among the member countries of the South Asian Association for Regional Cooperation (SAARC), Nepal has profitable trades with Maldives and Afghanistan.There is trade deficit with the remaining six SAARC member states.
Nepal Trade Deficit
Of the 128 countries with trade deficits, Nepal has zero exports to 31 countries, including Jamaica, Belarus, Andorra, Haiti and Iceland. Nepal has the highest trade deficit with India during this period. As per the data, the trade deficit with India is Rs 6.662 trillion. Exports to India stood at Rs 69.81 billion with imports of Rs 7.352 trillion during the year. After India, Nepal has a trade deficit of Rs 1.873 trillion with China. Likewise, the trade deficit with Indonesia stood at Rs 30.68 billion, and with United Arab Emirates Rs 17.93 billion. Similarly, Nepal has trade deficit of over Rs 16-16 billion with Canada and Argentina respectively. Other countries with major trade deficits include the United Kingdom, Malaysia, Ukraine, France and South Africa.
Last year, the export was 96.15 billion. This is 1 percent less than the previous year. The lock down against COVID-19 had affected positive exports since the beginning of last year. As per the customs department, goods worth Rs 1.20 billion were imported during the last fiscal year, which is 15.6 percent less than that of the fiscal year 2075/76.
Last year, refined palm oil was the highest export. Palm Oil brought a export revenue of Rs. 18.31 billion in the country. Similarly, soybean oil worth Rs 12.31 billion, carpets worth Rs 60 billion, yarn and wool worth Rs 56 billion were exported. Similarly, readymade garments, tea, cardamom, carpets, food grains, utensils and other items have also been exported.
Despite the lockdown, exports to India increased last year. Nepal exported Rs 69 billion to India last year that stood at Rs 62.73 billion in FY 2075/76 . Exports to neighboring China, did well in the first month of last year, but shrunk to Rs 11.84 billion by the end of the fiscal year, from Rs 21 billion in the previous year.
Last year, the highest import was of diesel worth Rs 87.38 billion. Diesel imports are 32.50 billion less than the previous year. In the fiscal year 2075/76, Diesel import stood at Rs. 120 billion. Likewise, semi-manufactured raw materials worth Rs 42.23 billion, petrol worth Rs 28.36 billion and gas worth Rs 27.95 billion were imported last year. Petrol and gas imports were also lower last year.