April 9: The impact of the recession on the market has been clearly seen in the import of goods from Birgunj Customs, the largest dry port of Nepal in terms of import and export volume. The import of most of the major goods entering through this border has decreased.

Data of Birgunj Customs shows that imports of 17 out of 20 major items have decreased. Customs officials say that the impact of recession on business in the wake of Covid-19 pandemic has clearly visible from the decline in goods at the customs.

Information Officer of Birgunj Customs, Ram Chandra Dhakal said that the import of petroleum products, vehicles and industrial raw materials, which were the major imports in the past, has decreased significantly. “Imports of goods consumed in the domestic market and raw materials for exportable products have also decreased. Such a situation has never been before," he said.

According to the customs officials, the import of diesel, which is number one in the import list, has decreased by 31 percent from July to February of the current fiscal year compared to the same period of the previous year.

Similarly, import of petrol has decreased by 10 percent. According to the customs data, the import of aviation fuel has decreased by 77 percent.

Entrepreneur Rajesh Kyal says that fuel consumption has dropped due to the lack of demand in the domestic market and slump in the construction business.

Imports of MS steel strips and billets, the raw materials used by the construction materials industry, have also decreased by 93 and 70 percent, respectively, according to the customs data. The import of coal consumed by the cement industry has decreased by about 60 percent.

The import of dozers used in construction work has decreased by 64 percent. The import of industrial equipment also seems to have declined. Such imports have decreased by 12 percent.

Import of semi-refined soybean oil has decreased by 92 percent and semi-refined palm oil by 62 percent. Import of semi-refined sunflower oil has decreased by 57 percent.

Exports of the industries which used to import semi-refined oil and export it to India are now almost at a standstill. After India adopted a policy to impose zero duty on oil imports, the export from Nepal, which until then capitalized on the difference in the duty rates, has now come to a standstill.

The import of jeeps, cars and vans has decreased by 84 percent. The government had restricted imports to reduce pressure on foreign exchange reserves. Traders say that even though the import ban was lifted recently, there hasn’t been much imports due to lack of demand in the domestic market of Nepal.