The export value of listed goods expressed in rupees shot up by 32 percent in the first half of the fiscal year, largely due to a depreciation of the Nepali currency vis-à-vis the United States dollar.

Shipments of products in the Nepal Trade Integrated Strategy (NTIS) catalogue were worth Rs22.93 billion, according to the Department of Customs.

Exports during the same six-month period from mid-August to mid-January in the previous fiscal year were valued at Rs17.36 billion.

Trade experts say that higher cost of raw materials and supply bottlenecks boosted producer prices too.

Exports of fabrics, textiles, yarns and ropes increased to Rs7.89 billion in the first six months from Rs5.9 billion during the same period of the last fiscal year.

Carpets worth Rs5.51 billion were exported compared to Rs4.40 billion previously.

The export of large cardamom increased to Rs3.70 billion from Rs2.28 billion.

Tea exports also swelled to Rs2.51 billion from Rs1.85 billion.

Pashmina exports amounted to Rs1.77 billion, up from Rs1.60 billion.

Ginger exports increased to Rs546.69 million compared to Rs231.51 million in the same period of the last fiscal year.

The export of medicinal herbs increased to Rs303.74 million from Rs225.75 million.

Among the products that showed a drop in exports, footwear shipments decreased to Rs534.11 million in the first six months from Rs617.18 million in the first six months of the last fiscal year.

Leather exports also plunged to Rs110.76 million from Rs244.23 million.

Former commerce secretary Purushottam Ojha said it was too early to say why exports of Nepali goods showed an increase. “Most probably it is the appreciation of the US dollar.”

According to Nepal Rastra Bank, the Nepali currency fell against the US dollar by 3.14 percent in mid-December 2022 from mid-July 2022. The buying rate was Rs131.64 per $1 in mid-December 2022 compared to Rs127.51 in mid-July 2022.

Nepal identified 19 high-value goods and services for export through the NTIS in 2010.

In the following years, the government revised the list by removing poor-performing items and adding new ones in a bid to streamline the plan. The list of products and services identified for special treatment was whittled down to 12 from 19.

Lentil, honey, noodle, handmade paper, silver jewellery and iron and steel products were chucked out. In the services list, health, education, engineering and hydroelectricity were also dumped.

Fabrics, textiles and yarns, leather and footwear were added to the list.

“The goods have been listed since 2010, but their export growth is not satisfactory,” said Ojha.

The government is reviewing the NTIS catalogue for the third time after exports did not improve amid a changing global trade landscape.

Ojha said that although increased demand for goods does not typically drive up prices much on its own, the increase in demand coincided with rising global supply constraints.

"The international supply has been disturbed due to the Russia-Ukraine war impacting production," said Ojha. “Also, it will be good if our products keep up with increased momentum.”

Nepal developed and adopted the NTIS 2010 as an updated version of the Nepal Trade and Competitiveness Study 2004 that focused on the development of 12 goods and seven services to contribute to the government's poverty reduction goal by making trade inclusive and equitable.