Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010Lentils are subject to occasional export bans. The GoN banned the export of lentils for more than six monthsin 2009.Index 1: Export PerformanceTable 2.12Export Value of Lentils, 2004-2008 (US$1,000)Direct data (Nepal) 2003/04 2004/05 2005/06 2006/07 2007/08Exports overseas 13,975 8,628 21,010 6,222 17,946Exports to India 8,909 10,263 9,895 4,204 4,312Total exports* 22,884 18,891 30,905 10,426 22,258Mirror data 2004 2005 2006 2007 2008Exports overseas 0 0 0 0 22,509Exports to India 7,829 8,144 5,225 2,267 5,156Total exports 7,829 8,144 5,225 2,267 27,665* Exchange rates used: 1US$ = NRs 65 until 2005/06, then 1US$ = NRs 73.Nepalese export data differs substantially from foreign (mirror) data. Unlike for other products, Nepalese datawas used to calculate indicators as the mirror data appears to be less reliable in this case. In particular, theimports reported from Turkey might not be accurate. The fact that domestic production was relatively stablesince 2003/04 is also a good indicator that exports may have been rather stable as well, but even Nepalesedata shows substantial fluctuations. Policy interventions, such as export bans, could also have a significanteffect on the accuracy of trade data because they give an additional incentive to use informal channels.Types of Exported Products: Whole and split pink lentil (mostly) in 50 kg jute bags with lining. Seed coat (chunibhusi) are exported to India as animal feed.Current Export Destinations: Nepal is currently exporting lentils to only a few countries. India remains themajor destination, but Bangladesh and Sri Lanka have come up as other export market offering much potential.The USA, UAE, and Singapore are other export destinations. Turkey has appeared as a major importer in 2008,according to import data from Turkey. However, this could not be confirmed by Nepalese sources.Potential Export Destinations: An empirical review and analysis of non-traditional potential markets indicatesthat a number of Middle East countries (Iraq, Saudi Arabia, Kuwait, and Qatar) could potentially be interestedin importing Nepal’s lentil. Turkey also seems to be an attractive market.Nepal’s World Market Share: Nepal is recognized as a significant player in the world’s lentil market. Over thepast two decades, it has ranked as number eight both as a producer and as an exporter of lentil. Nepalese lentilsare said to be preferred in India. In comparison with Indian lentils, they are smaller in size but consideredtastier. In 2008, Nepal’s world market share was 2.2 per cent and it was the sixth largest exporter.Trade Balance: Nepal also imports lentils from India. Such imports are volatile and have been betweenUS$100,000 and US$10 million in recent years. According to Nepalese data, exports and imports with Indiaare very similar, but if trade with third countries is included, Nepal is a net exporter.40NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT