Kathmandu: Nepal's trade deficit has widened by 1.6 percent in the first eight months of the current fiscal year.

Trade deficit in the first eight months of the previous fiscal year was Rs. 849.33 billion while it is Rs. 863.2 billion this year.

In the overall, trade deficit with India has broadened by 9.7 percent while with China Nepal's trade deficit decreased by 6.9 percent in the first eight months of this fiscal year, according to the data revealed by the Nepal Rastra Bank.

The Nepal Rastra Bank data of the first eight months of the current fiscal showed that total export stood at Rs. 80.77 billion in the eight months of fiscal year 20/21. It was Rs. 74.90 billion in the same period of previous year. It is a 7.8 percent rise in comparison to the same period of the previous year.

Similarly, the NRB data showed that the total import stood at Rs. 943.98 billion in the first eight months of the current fiscal year. It was Rs. 924.2426 billion in the same period of the previous fiscal year. It shows that imports increased by 2.1 percent in relation to the same period of the previous year.

Trade deficit with India widened by 9.7 percent in the first eight month of the current fiscal year, according to the NRB data.

In this, total import from India rose by 9.8 percent. Total import from India in the current fiscal year is Rs. 622.3028 billion whereas it was Rs. 566.67 billion in the same period of the previous year.

Nepal's export to India this year compared to the first eight months of the previous year has risen by 11.3 percent. Total export for the first eight months is Rs. 58.19 billion whereas it was Rs. 52.27 billion in the same period of the previous fiscal year.

In the current fiscal year, there is a significant rise in the export of fruits to India. In the fiscal year 19/20, total export of fruit in the first eight months was Rs. 3.8 million however fruits worth Rs. 11.5 million was exported to India this year. There is 204.9 percent increment in the export of fruits this fiscal.

There is a significant fall in the export of Palm Oil to India in the current fiscal year. The total export of Palm Oil to India in the fiscal year 2018/19, 2019/20 was Rs. 10.33 billion, Rs. 18.31 respectively.

But in the first eight months of the current fiscal year, the total export of palm oil to India has just reached Rs. 0.4 million. In the review period of the first eight months of the current period, there is 100 percent decline in the export of this product.

Similarly, there is also a significant fall in the export of animal feed. The export of animal feed to India in fiscal year was Rs. 147.5 million in the first eight months of 2019/20. However, the export in the first eight months of the current fiscal year shrunk to Rs. 24.1 million. Therefore, there is an 83 percent decline in the export in the review period.

Export of Palm oil and cattle feed are the two items that have declined by more than 80 percent.

Out of the total export to India, there is decline in the export of more than 50 percent of these items in the first eight months.

Trade deficit with China in the first eight months declines by 6.9 percent. In the current fiscal year, the total export to China amounted to Rs. 613 million whereas it was Rs. 1.089 billion in the same period of the previous fiscal year. There is 43.7 percent decline in the total export.

In the first eight months, there was a rise in the export of Handicraft (Metal and Woolen), readymade garment and woolen garment. However, there is decline in the export of incense sticks and handicraft craft.

Total import of Nepal from China in the current fiscal year is Rs. 136.19 billion whereas it was Rs. 146.6522 billion in the same period of previous fiscal year. There is decline of imports by 7.1 percent in comparisons to the same period of the previous fiscal year. There is an increase in the import of garlic, glassware, medical equipment and tools, stationery, transport equipment from China. But imports of other items have been coming down.