Ministry of Commerce And Supplies - Enhanced Integrated ...

N T I S2010As with most products, there is a significant difference between Nepalese data and mirror data, except for themost recent period. However, what is clear is that 80-90 per cent of exports go to India alone. Mirror data wasused for the calculation of indicators.Types of Exported Products: Brown and white noodles, with a large number of brands in each category.Brown type of noodles comes in three different ways: straight out of pack, cooked, or as a soup. In terms of HScodes, most exported pasta products are 1902.19 (‘uncooked pasta, not stuffed or otherwise prepared, nes’,with some exports of 1902.11 (‘uncooked pasta, not stuffed or otherwise prepared, containing eggs’).Current Export Destinations: According to Nepalese data, in 2008/09, exports to India constituted 83 percent, China (including Hong Kong) 14 per cent, and Bhutan 2 per cent. Very small amounts were exportedto Malaysia, Kuwait, UAE, EU, and Australia. Mirror data shows 88 per cent exports to India and 7 per centexports to Qatar.Potential Export Destinations: The largest markets for instant noodles in terms of consumption are China,Indonesia, Japan, USA, Vietnam, Korea, Philippines, Thailand, Russia, and India. India and some countries inthe Middle East have very large growth in consumption.Nepal’s World Market Share: Given the diversity of products grouped together under the applicable tariffcode, no exact calculation of the size of the world market or Nepal’s share in it is possible. However, Nepalhas almost a 100 per cent share of the Indian import market. 21Trade Balance: Nepal imports noodles from a number of countries like Italy, Turkey, and India, but the importvalue has been below US$0.5 million in recent years and some imports, such as those from Italy, are differenttypes of pasta. Wheat flour, the major input for noodle factories, is mostly supplied by domestic wheat flourfactories. But some wheat flour is imported from India due to price differences and quality considerations.Dynamism of Exports: Exports have increased substantially over recent years, both according to Nepalese andIndian data, and also by both value and volume. According to interviewed companies, many new productionunits are coming up with new brands of noodles for export markets.Index 2: World Market ConditionsInstant noodles do not have a specific tariff code in most countries. They would usually fall under the HSheading, 1902.11/19 (uncooked pasta), which also includes completely different types of noodles. That meansthe world trade indicators are not meaningful for the instant noodles sector. In the absence of trade data oninstant noodles, estimates for consumption provided by the World Instant Noodles Association (WINA) areshown. There is no comparable data on values, but with a rough assumption of a typical cost of US$10 cts. perpack, the world instant noodles production would be worth more than US$9 billion.Table 2.20Total World Consumption of Instant Noodles, 2004-2008(in million packs)2004 2005 2006 2007 200879,980 86,000 92,080 98,420 93,600Source: http://instantnoodles.org/noodles/expanding-market.html21The actual share for the main exported product (1902.19) is 80-90 per cent, but most of the remainder comes from Italy, for which one canassume that it is not a directly competing type of pasta.52NEPAL TRADE INTEGRATION STRATEGY 2010BACKGROUND REPORT