Traders reduce import of Chinese goods by 35 percent for Dashain
KATHMANDU, Oct 7: Traders have reduced imports of Chinese goods targeting upcoming festivals by at least 35 percent compared to last year´s volume fearing rising price of those goods on the back of stronger Chinese currency and US dollar against Nepali rupees.
Besides rise in transportation cost, upward revision of customs valuation has also made Chinese goods more expensive in Nepali market.
“As traders are not interested to import more goods from China this year fearing negative reaction from customers toward the rising prices of the Chinese goods, they have reduced the import quantity by around 35 percent compared to last year,” Nilkantha Chaulagain, president of Nepal Trans-Himalayan Trade Association (NTHTA) told Republica.
Over the year, value of the greenback has reached to Rs 85, up from Rs 72. Similarly value of Chinese Yuan too strengthened to Rs 14 from Rs 11 last year.
“Worse still, transportation fare for ferrying goods along Kathmandu-Khasa route has raisen to Rs 90,000 this year from Rs 70,000 per container last year which has also pushed up the price of Chinese goods in our markets,” said Sunil Timilsina an importer, who runs a wholesale shop at Wotu.
He also said goods were becoming more expensive in local Chinese markets as well.
Traders order huge quantity of Chinese goods to cater to the demands mainly of lower and middle class during the Dashain when Chinese imports covers around 20-25 percent of the total annual imports from the northern neighbor.
Nepali traders are mainly importing readymade garments, electrical goods, electronics, shoes, bags and home appliances from China during the festivals.
“Imports from China targeting Dashain festival contributes to 20 to 25 percent of the total annual imports of Chinese goods. However this year, traders have reduced the volume of their order as they were worried that the demand of goods may be affected due to increase in prices,” said Keshav Rayamajhi, first vice-president of NTHTA.
Trade and Export Promotion Center, an authorized agency to keep trade data, states Nepal imported Chinese goods worth Rs 52.92 billion and exported goods valued at Rs 985.69 million during the fiscal year 2011/12.