Goods start coming in via Rasuwagadhi

KATHMANDU, Nov 10: Fourteen containers carrying Chinese apples entered Nepal through Rasuwagadhi customs points on Tuesday, government officials informed. Other essential goods are also on their way toward Rasuwagadhi.

Nepali consumers will heave a sigh of relief at this first commercial consignment from the northern neighbor since the start of the Indian blockade, said officials. Life here has been crippled by the acute shortage of fuel and other essentials.

The apple consignment used the trade route that came back into operation on October 15 following a gap of about six months. Petroleum supplies and some support materials provided for the quake victims by China had also come via this route.
Rasuwagadhi and Tatopani customs points had come to a halt after severe damage in the devastating earthquakes of April and May, leaving the country completely dependent on India for all its trade, including third-country trade.

Sishir Dhungana, director general of the Department of Customs (DoC), informed that the apples are a first batch of commercial consignments. Traders had placed their orders soon after the customs point came back into operation. "Apples are in high demand during festivals such as Tihar and Chhath," said Dhungana, adding that other essential goods will follow in the coming days.

A large number of consignments have already arrived in Kerung and the next items to come through will be apparels, shoes, induction stoves and the like, informed Rajesh Kaji Shrestha, president of Nepal-China Chambers of Commerce and Industry.

Shrestha stressed on the need for facilitating the arrival of Chinese tourists in the country as a drop in the number of tourists following the blockade has badly affected this sector.

Consumers especially in the lower income strata purchase Chinese apparels and other goods in the festival seasons but this year Chinese goods were not available during Dashain as both the trade routes were shut and Chinese consignments coming via India are still stuck at Kolkata port and on their way to Birgunj.

Some 28 tankers carrying petroleum also entered on Tuesday. The Government of China has provided Nepal petroleum as a grant following the Indian blockade.

Nepal inked a framework agreement on October 29 to import one-third of its petroleum requirements from China and break its dependency on India through trade diversification. The details of the agreement for importing petroleum from China are being worked out between officials of Nepal Oil Corporation (NoC) and China National United Oil Corporation (PetroChina). Petroluem imports via the northern trade routes are expected to ease the fuel crisis soon.

A bilateral team of technical officials from the government of Nepal and China are heading for the Tatopani trade route to make further assessments for reopening this route which accounts for over 90 percent of the total trade with China, according to DoC officials.

Government of Nepal has now realized the importance of opening alternative trade routes and developing infrastructure for trade diversification and it has started its homework toward that direction.

Speaking at a parliamentary committee on Monday, Bijay Kumar Gachchhadar, deputy prime minister and minister for physical infrastructure and transport, admitted the past mistake in overlooking the importance of opening new trade routes with the northern neighbor. Government officials have started work on a feasibility study for opening seven alternative trade routes with China in addition to Rasuwagadhi and Tatopani.

Nepal imported goods worth Rs 78 billion from China in fiscal year 2013/14, and exports toward China stood at Rs 2.9 billion. Nepal's trade with China by value is second only to trade with India.