A private sector team led by the vice-president of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI) Dinesh Shrestha has left for Kolkata to plead with Indian shipping companies to waive port rent, demurrage and delay and detention fees to which traders have been subjected after their shipments were stopped due to the Indian embargo.

The delegation will hold talks with shipping companies under the aegis of the Nepali consulate in Kolkata, the FNCCI said in a press statement. 

Earlier, the government had decided to launch a diplomatic initiative to have the charges cancelled after Nepal-bound goods got stranded at Kolkata port and other transit points.

According to the Nepal Freight Forwarders Association (Neffa), importers owe more than Rs6 billion in such charges. 

The FNCCI-led team consists of Neffa President Rajan Sharma, Birgunj Chamber of Commerce and Industry President Pradeep Kumar Kedia and the immediate past president of the Merchant Association, Morang Abinas Bohora, among others.

The FNCCI said the delegation would hold talks with officials of the Association of Shipping Interest in Calcutta and the Nepal Clearing Agents Association to have the fees waived.

Meanwhile, discussions will also be held on the importance of bilateral trade between Nepal and India and the losses suffered by both the neighbouring countries due to the ongoing trade embargo, according to the FNCCI.

Although the amount of cargo stranded in Kolkata has declined substantially, importers said hundreds of shipments still remained to be cleared. 

According to the FNCCI, it has been holding talks with international institutions such as UNESCAP, UNCTAD and the International Maritime Organisation.

Nepal’s exports and imports have both dropped sharply as a result of the trade embargo and obstructions in the transportation system. Merchandise exports saw a negative growth of 29.1 percent to Rs26.17 billion in the first five months of the current fiscal year compared to a drop of 1.2 percent to Rs36.91 billion in the same period of the previous year. 

Likewise, merchandise imports plunged 32 percent to Rs213.83 billion compared to a growth of 16.3 percent to Rs314.52 billion during the same period in the previous year.