December 22: Birgunj customs, which is the main transit point for goods and cargo in and out of the country, recorded an import of goods worth Rs 121 billion from India in the first five months of the current fiscal year.

According to the Birgunj Customs Office, Nepal exported goods worth Rs 76.33 billion to India during the same period.

During the review period, Nepal recorded a trade deficit of Rs 45.15 billion at the customs point.

Vehicles, petroleum products and raw materials for industries are the major products imported by Nepal from India. Customs officer Ramesh Sukmani says that the import of all major products has declined in recent months. The impact of coronavirus has been seen on import of goods, says Sukmani.

Refined soybean oil has become Nepal’s chief export product to India. Until last year, palm oil topped the list of Nepal’s export products. However, the Nepali exporters started sending soybean oil to India after the neighbouring country banned palm oil from Nepal.

Nepal exported soybean oil worth Rs 9.1 billion to Indian during the review period. Soybean oil produced by 14 industries along the Bara-Parsa Industrial Corridor are exported to India from Birgunj customs.

The customs office informed that the export of soybean oil has increased by 379 percent in the first five months of current fiscal year compared to last year in terms of the price of the product.

“The local exporters of Nepal shifted their focus to soybean oil after India banned palm oil,” said Sukmani.

India had imposed the ban around eight months ago to promote the products of its local farmers.

Nepal imports semi-refined soybean oil from countries like Argentina, Brazil, Ukraine and Indonesia and then exports it to India without any customs duty after refining it.  

Nepal also exports juice, chawanprash, synthetic yarn, sports shoes, carpet among others to India. Meanwhile, it imports Ayurvedic medicines, steel utensils, paper boxes from India.