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Nepal Facing Trade Deficit with Bangladesh

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Nepal Facing Trade Deficit with Bangladesh
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December 24: Nepal’s bilateral trade with Bangladesh was in surplus until a decade ago. However, there is a trade deficit of Rs 4 billion annually after the export of red lentil and wheat came to a halt.

In 2016, Nepal ranked among the top five countries in the world to produce small red lentil. Nepal had even topped the USA in production of red lentil. Nepal had been earning good foreign currency be selling red lentil. However, the export of red lentil has been declining in recent years.

The reason behind decline in production of red lentil is the government’s failure to bring policies to encourage farmers, says Avinash Bohora, central member of the Federation of Nepalese Chambers of Commerce and Industry (FNCCI). Bohora said that he had been exporting  red lentil to Bangladesh earlier but now the cost has gone up in the country itself due to which he was unable to export the produce.

 

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