December 7: The government has been claiming that Nepal’s foreign trade is improving as a result of surplus Balance of Payments due to decline in imports. However, the country’s domestic production is bot satisfactory.

Domestic products taking the market instead of imported goods is considered as a good sign of economy. However, industrialists and entrepreneurs are not ready to buy the idea that Nepal’s foreign trade is improving because the production and demand both had shrunk in the country. The government’s data shows that the import of raw materials required for industries has gone down in the recent days. Stakeholders of the private sector say that the import of such materials has declined due to coronavirus pandemic and the increase in price.

The import of major raw materials required for industries has declined at Birgunj customs point in the first four months of the current fiscal year. Birgunj is not just the main transit point but also a major industrial hub. The construction and food processing industries in this corridor import raw materials through this customs point.

The import of iron from this entry point has declined by almost half during the review period. The country had imported 359,000 metric tons of iron during the corresponding period of last fiscal year. However, the import of iron dropped to 185,000 metric tons this year, says customs officer Jagdish Purbe.

The import of raw materials through the Integrated Check Post (ICP) of Birgunj has also declined. Nepali importers had imported 48,495 metric tons of billet during the first four months of last fiscal year but the import this year dropped by 28 percent to 34,682 metric tons, says customs officer Ramesh Sukhmani.

The local importers of Nepal have placed less demand due to rise in price of billet in India.

The price of iron rods has skyrocketed due to the increase in price of raw materials, says industrialist Rajesh Kyal.

“The price of iron rods has increased due to the rise in price of raw materials. In the meantime, the demand has declined,” says Kyal.

The demand for cement has also declined says industrialist Saneeep Agrawal. He says that the price and production of cement both have declined due to the low demand. The producers say that the price of cement has dropped by Rs 180 to Rs 230 oer sack.

Likewise, the import of clinker has also taken a nosedive.

The ICP officials said that clinker has not fallen among the top 20 imports of Nepal this year.

Although it is said that the import of clinker has declined due to the production within the country, many industries are operating at below 50 percent capacity.

Similarly, the import of raw materials of food processing industries has also declined.