The number of exports of five of the nine stocks recorded in the Nepal Trade Integration Strategy (NTIS) fell in the last fiscal year. Revenues from the trading of cardamom, ginger, tea, leather, and footwear, noted in the NTIS as high-value things.
Market analysts credited the loss to the failure of Nepali goods to fight with low-priced products from India and China in the global market.
Along with nine products, herbals and polyester thread saw a double-digit increase of 27 percent and 11.27 percent each. The export benefits of pashmina and woolen carpets registered a minimal growth of 4.39 percent and 1.22 percent each.
The government placed nine products in the NTIS account in a request to increase trading earnings and include ballooning imports by giving a cash consideration to exporters.
The country reported export profits figuring Rs37 billion from the nine products. Results from polyester yarn and medicinal and aromatic plants reached Rs16.2 billion and Rs1.44 billion each.
“The government did not even carry out a detailed assessment of the potential of these products before including them in the NTIS list,” a ministry official stated.
The government provides a cash consideration equal to 3-5 percent of the trading price of NTIS products. Traders receive a 5 percent cash consideration for exporting tea, large cardamom, ginger, leather goods, and prepared herbs and oil products with benefit increase of about 50 percent.
Traders receive a 3 percent cash incentive for exporting pashmina goods following the Chyangra Pashmina brand, textiles, woolen carpets, and yarn made of polyester, viscose, acrylic, and cotton.
The government began giving cash incentives to various industries from the fiscal year 2011-12 to boost exports. The incentive price was equal to 1-2 percent of the trading price. Such incentives were restricted to third-country trading’s. From June, the government began giving incentives for 27 products exported to India which include NTIS products.
“Although the government has been spending huge amounts of money by revising the threshold of the cash incentive, the scheme has failed to yield results,” the ministry source stated.
In the previous fiscal year, Nepal’s tradings increased by 19.4 percent to Rs97.1 billion during imports rose by 13.9 percent to Rs1.41 trillion. As a result, the country’s commerce debt increased by 13.5 percent to Rs1.32 trillion.