Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Index 1: Export PerformanceExport Value: All recorded exports of ginger go to India. Nepalese export data and Indian import data arerelatively similar. Export volumes are approximately 30,000 to 40,000 MT/year. It is believed that there issignificant informal border trade. According to estimates obtained from industry sources, around 75 percent of the domestic production is exported, which is around three times higher than the official exports. Thismeans that annual exports could be as high as US$25 million. However, this figure is not reliable and we willuse the official numbers for the calculation of indicators.Table 2.4World Value of Ginger, 2005-2009 (US$1,000)2005 2006 2007 2008 2009Total Export Value 3,855 6,006 9,417 8,130 n/aTotal export value(Nepalese data)3,709 5,191 8,094 8,180 n/aFresh ginger(Nepalese data)2,477 4,234 7,415 7,441 n/aDried ginger(Nepalese data)1,232 957 679 739 n/aAll fi gures are in US$1,000. Nepalese data refers to 2004/05–2007/08.Types of Exported Products: Ginger is exported mainly in fresh form. Two types of dried ginger (“sutho”) arealso exported: sun-dried from Rapti zone (in the mid-western region) and fire or smoked-dried from Lumbiniand Gandaki zones (western region of Nepal). Dried ginger constitutes 10-30 per cent of the total gingerexport. Other exported products are ginger oil and oleoresin, but in negligible volumes.Current Export Destinations: Almost all exports (both fresh and dried) are to India, particularly to northernIndian markets of Gorakhpur, Varanasi, Lucknow, Kanpur, Patna, Jaipur, and Delhi. Besides, according toindustry sources, Nepal exports very small amounts of ginger to Pakistan and Bangladesh, but this cannot beconfirmed with official trade data. It should, nevertheless, be added that much of what is exported to India(especially dried ginger) is re-exported to Pakistan.Potential Export Destinations: The major importers of ginger are Japan, USA, EU, Pakistan, and Malaysia. Indiaalso exports large amounts to Bangladesh and Saudi Arabia. Nepal does not export direct to those markets,though some of its exports to India are probably re-exported. According to industry sources, there could be apotential for direct exports to some of those markets for dried ginger. (More on this below.)Nepal’s World Market Share: Nepal is currently the sixth largest exporter of ginger, although its share inworld exports is only 2.4 per cent. This share does not account for informal border trade with India, which isbelieved to be significant. The world market is highly dominated by China (62 per cent).Trade Balance: Total trade balance of ginger is consistently highly positive. Nepal imports only nominalamounts of ginger, especially from China. Such imports amounted to less than 17 per cent of its total officialexport in 2007/08, according to the Trade and Export Promotion Centre (TEPC) data.Dynamism of Exports: India is a large and fairly dynamic market for Nepalese ginger. Supply of ginger fromdomestic sources in India, particularly Cochin and Bangalore, is penetrating into the established Nepali gingermarkets of northern India. However, due to its proximity, Nepal still enjoys comparative advantages and isnot losing market share because the Indian market is expanding. There are also many small markets borderingNepal where a large quantity of Nepali ginger is exported to. Thus, within India, Nepal has access to manymarkets. Nepal is losing some share in southern India, but this represents less than 5 per cent of Nepal’s totalexport to India.28NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT