Nepal's imports from India, China go down in five months
Exports also witness a negative growth
Sourcewise, imports from India, China and other countries fell by 39.2 per cent, 14.1 per cent and 22.6 per cent respectively in the review period. Commoditywise, the import of petroleum product shrank to Rs. 18.35 billion, a significant decline of 63.2 percent from the level of Rs. 49.88 billion a year ago.
Likewise, merchandise imports dropped significantly by 32 per cent to Rs. 213.83 billion as against a growth of 16.3 per cent to Rs. 314.52 billion in the same period of the previous year. The decrease in imports is attributed mainly to a decrease in imports of goods including petroleum products on account of unrest in southern plains along with obstruction at customs points.
Likewise, the exports-imports ratio reached 12.2 per cent in the review period on account of a fall in imports. Such ratio was 11.7 per cent in the same period of the previous year.
Customs points-wise Trade Situation: The second development pertains to the change in customs points-wise trade flows in the review period. For example, while the major customs points such as Birgunj, Biratnagar, Bhairahawa and Nepalgunj showed trade decline of 67 per cent, 11.5 per cent, 2.7 per cent and 21.5 per cent respectively. Tribhuvan International Airport customs point and Kailali recorded a trade growth of 7.7 per cent and 135.4 per cent respectively.
Export-Import Price Index: The third development relates to the terms of trade (TOT) situation, which continued to be favourable for Nepal. For instance, the y-o-y unit value export price index based on customs data increased by 13.1 per cent while import price index decreased by 7 per cent in the fifth month of 2015/16. Consequently, the TOT index increased by 21.6 per cent compared to an increase of 11.8 per cent in the corresponding period of the previous year. Increase in price of major export items such as tea, yarsagumba, cardamom caused the export price index to rise in the review period. Fall in the price of petroleum products resulted in a decline in import price index in the review period.