Earnings from exports to China surge 72pcNepal’s earnings from exports to China surged 72.3 percent in the first seven months of the current fiscal year, according to the Nepal Rastra Bank, the central bank.
Nepal’s earnings from exports to China surged 72.3 percent in the first seven months of the current fiscal year, according to the Nepal Rastra Bank, the central bank.
Nepal exported goods worth Rs1.77 billion to the northern neighbour during the seven-month period from mid-July to mid-February, as against Rs1.03 billion in the same period a year ago. The earning generated from exports to China in the seven-month period marks almost threefold jump from the same period two years ago.
With the hike in exports, the share of export earnings from China in total export earnings rose to 3.7 percent, up from 2.4 percent in fiscal year 2015-16.
A massive rise in shipments of pashmina, woolen carpet, wheat flour, tea and noodles resulted in an overall surge in exports to China. Pashmina exports soared 172.4 percent, generating earnings of Rs57.1 million.
Likewise, export earnings from woolen carpet rose 19.7 percent to Rs150.6 million, the second largest export in value. Handicraft exports, which top the list, dropped to Rs245.1 million from Rs253.8 million.
As per the Trade and Export Promotion Centre (TEPC), the encouraging export figure could be the result of increasing demand for handmade items along with a change in the Chinese people’s lifestyle.
“In addition, lax quality assurance and lab certification requirements compared to other export destinations could have led to a rise in shipments,” TEPC Director Suyash Khanal said. “Similarly, increasing participation of Nepali traders in Chinese trade fairs has also helped boost the country’s exports.”
China provides duty-free, quota-free market access to 8,030 Nepali goods. They include cooking utensils, outfits, footwear, tooth paste and brush, beauty products and toiletry, printing paper, buttons made of animal bone, animal products, medicinal oil and products, pen, daily goods made of feather and plastic products, among others. As per the TEPC, most of Nepal’s exportable goods qualify for preferential treatment in China.
Almost 95 percent of the Nepali exportable goods are eligible for duty-free, quota-free status provided by China, Khanal said.
According to the TEPC, Nepal’s exports to China reached an all-time high of Rs2.98 billion in 2013-14. However, exports went into freefall after Chinese authorities closed the Tatopani trade route following April 2015 earthquake.
A number of Chinese traders have been buying Nepali goods from the local market to sell them in China, Khanal said. Around 25 percent of Nepal’s total trade with China is done through the Rasuwagadhi-Kerung overland route. Nepal uses the sea port of Kolkata for the rest.
Meanwhile, Nepal imported goods worth Rs88.45 billion from China in the first seven months of the current fiscal year, up 19.7 percent than in the same period a year ago. Telecommunications equipment, electronic goods, machineries, readymade garments, chemical fertilisers, medical equipment and footwear are among the major imports from China.