Print Edition - 2014-10-09 | MONEY
Shipments of fancied export products rise 2pc
Oct 8, 2014-
Exports of products identified as having high export potential by the Nepal Trade Integration Strategy (NTIS) increased marginally by 2.08 percent in the last fiscal year 2013-14.
The annual report of the Trade and Export Promotion Centre (TEPC) shows that shipments rose to Rs 27.41 billion in the last fiscal from Rs 26.85 billion in the previous fiscal. Of the 13 exportable goods identified under the NTIS, exports of 10 products grew while exports of three farm-based products -- lentils, tea and ginger -- saw a drop.
Ginger exports suffered the greatest fall of 66.2 percent. Shipments plunged to Rs 449.9 million from Rs 1.33 billion. However, Narendra Kumar Khadka, president of the Nepal Ginger Producers’ Association, said that the TEPC’s record was misleading..
“As most of the ginger exports to India are done without stating the correct quantity on the declaration forms, the actual figure should be much higher than what is shown in the government’s official records,” he said. “Traders ship up to three truckloads of ginger in a single consignment to avoid paying the high quarantine fee in India.”
Khadka admitted that exports of Nepali ginger had not increased massively due to the failure to improve the quality. According to him, the spicy root is in high demand in India, Bangladesh and the Gulf countries. “If there was a processing plant, exports could have been increased several times,” he said, adding that an investment of Rs 200 million in the least would be needed to set up such a facility.
After ginger, exports of lentils and tea were down 23.5 percent and 0.7 percent respectively. However, exports of the rest of the 10 products increased last year.
Woollen and pashmina shawls topped the list in terms of securing the highest rise in export earnings. Export revenues rose Rs 650 million to Rs 2.82 billion. Silver jewellery, which had been on a downhill course for the last few years, saw a surge in earnings by 15.1 percent to Rs 223.36 million last year.
Hem Ratna Shakya, president of the Federation of Handicraft Associations of Nepal, attributed the export growth to the increased publicity of the product in the international market along with improved designs. “With support from international non-government organisations like GIZ, we have focused on promotion of silver jewellery in the international market,” he said.
Likewise, large cardamom and medicinal herbs also posted a remarkable growth in their export earnings. Their exports increased by Rs 430 million and Rs 330 million respectively last year.
Export of NTIS products
Export of NTIS products
NTIS Products FY 2013-14 FY 2012-13
Iron and steel products Rs 11.83 billion Rs 11.63 billion
Cardamom Rs 4.27 billion Rs 3.84 billion
Pashmina products Rs 2.82 billion Rs 2.17 billion
Lentils Rs 2.04 billion Rs 2.67 billion
Tea Rs 2.02 billion Rs 2.04 billion
Medicinal herbs Rs 1.60 billion Rs 1.27 billion
Noodles Rs 822.49 million Rs 601.39 million
Nepali paper products Rs 651.73 million Rs 549.86 million
Woollen products Rs 501.02 million Rs 427.83 million
Ginger Rs 449.90 million Rs 1.33 billion
Essential oils Rs 161.03 million Rs 87.03 million
Silver jewellery Rs 223.36 million Rs 194.11 million
Natural honey Rs 176,000.00 Rs 21,000.00
Total Rs 27.41 billion Rs 26.85 billion
Published: 09-10-2014 09:26