Nepal’s export of high-value products increased by 11.82 percent in the first half of the current fiscal year, largely due to a rise in the shipment of iron and steel products, readymade garments, and medicinal herbs.

Export earnings from goods identified by the Nepal Trade Integration Strategy (NTIS) 2023 totalled Rs48.34 billion in the review period.

Nepal reviewed the NTIS basket in the current fiscal year, adding 20 products and services to the list.

With the addition of the new products and services, the export revenue grew by Rs5.11 billion, according to the statistics of the Trade and Export Promotion Centre, the national trade promotional body.

“Export fluctuation by 5–10 percent is normal. The government has not introduced any programme to make a breakthrough in the export of Nepali goods and services,” said Purushottam Ojha, a former commerce secretary.

The government has yet to determine what factors will boost exports, Ojha said.

Without implementation of proper tools, the new NTIS initiative may fail again, he said.

According to the new NTIS, an estimated Rs463 billion will be required for its implementation.

The major target of NTIS 2023 is to attain Nepal’s trade-to-GDP ratio of 55 percent by 2026 from 43.81 percent in 2021.

According to the Trade and Export Promotion Centre statistics, the export of iron and steel jumped 83.5 percent to Rs8.69 billion in the first six months of the current fiscal year that ended in mid-January.

Iron and steel contributed the highest share of the export by 11.60 percent.

Insiders say that Nepal may export iron and steel worth Rs20 billion this fiscal year. India is the major market for Nepali iron and steel.

Nepal’s cement export totalled Rs891.21 million in the second quarter, up from Rs37.99 million in the same period last fiscal year.

Manufacturers say that Nepal can export cement worth Rs160 billion annually.

Shipments of readymade garments increased 16.1 percent to Rs4.97 billion in the review period.

The export of large cardamom increased by 4.5 percent to Rs3.90 billion. Large cardamom prices have reached near-record levels, with one of the world's most expensive spices trading at Rs2,150 per kg in the domestic market in January.

Dog chew exports increased 4.9 percent to Rs1.41 billion in the first six months of the current fiscal year.

The shipment of fabrics increased by 3.1 percent to Rs1.24 billion. Nepal’s medicinal herbs export increased by 57.9 percent to Rs1.21 billion during the review period.

The export of ginger increased by 72.4 percent to Rs942.69 million.

Lentil exports increased by 77.1 percent to Rs302.68 million. Vegetable exports grew by 38 percent to Rs498.14 million during the review period.

The country exported drinking water worth Rs2 million in the first six months of the current fiscal year. It was Rs13,000 in the same period last fiscal year.

Footwear exports increased to Rs641.46 million in the first six months of the current fiscal year from Rs635.79 million.

However, the exports of yarns, carpet, jute, felt, tea, pashmina, pasta, handmade paper, rosin and resin acid, essential or fragrance oil, silver and gold jewellery and coffee, fell.

The export of yarns declined by 3.5 percent to Rs5.83 billion in the review period. Yarns contributed 7.79 percent of exports.

Nepal’s woollen carpet export declined by 4.3 percent to Rs5.23 billion. Jute export decreased by 6.5 percent to Rs3.78 billion.

The export of felt products, newly added products to the NTIS list, decreased by 6.1 percent to 2.47 billion.

Tea exports were reduced by 14.6 percent to Rs2.14 billion in the first six months of the current fiscal year.

Pasta exports decreased to Rs991.79 million in the review period, compared to Rs997.04 million in the same period last fiscal year.

The export of Nepali handmade paper declined by 13.2 percent to Rs542.43 million during the review period.

Rosin and resin acid export decreased by 28.7 percent to Rs503.44 million.

Export of essential or fragrance oil reduced by 31.8 percent to Rs249.48 million. The export of silver jewellery decreased by 5.7 percent to Rs87.62 million and gold jewellery by 78.1 percent to Rs23.05 million.