Tensions in West Asia affect Nepal's foreign trade

In protest against the attack, Yemen's Houthi militia has been attacking cargo ships sailing through the Red Sea. This was affecting the trade chain not only in the South Asia region but also in the global market. Meanwhile, last Saturday, Iran also attacked Israel with drones and missiles, causing more instability in the world market. According to foreign trade experts, the latest tension in West Asia will affect the Nepalese market sooner or later.

They estimate that the impact of this can reach the common people's kitchen.

'Due to the war, there has been increased panic in the sea when importing goods. Houthi fighters have attacked a cargo ship. After the attack on the ship, the goods are re-routed from South Africa. It takes a month and a half to import, fuel costs have increased," said Vinod Kumar Sethia, president of the Nepal Sea Exporters/Pieters Association. "Overall, sea freight has increased by 30 to 40 percent. Iran also seizes the ship, that is another problem.'

Due to the war, the foreign exchange rate has also been affected. Sethia says that since international trade is related to all countries (interlink), if there is a war in one or two countries, the overall trade will be affected. Talking about Ukraine, if it cannot be imported from there, it will come from other countries, but the price will increase. When it comes to Nepal, it seems that the price may increase by 5/7 percent by adding all the costs," he said, "However, there has been a recession in the international market, the international market has decreased by 30 to 50 percent. For this reason, demand and supply can also determine the price in the local market.'

According to the customs department, in the 8 months of the current fiscal year, while the import of 10 trillion 322226 million rupees, alcohol, shoes, heart valves, live animals and other goods worth 184 million 81 thousand rupees have been imported from Iran. Laptops, notebooks, computer CPUs, chocolates, fruits, energy fruit juices, food supplements, etc. have been imported from Israel.

2 billion 61 crore 17 lakh 20 thousand worth of coriander, aircraft goods, animals, urea etc. have been imported from Russia. During the period of 8 months, 14 billion 368 million 84 thousand rupees worth of lentil, cumin, sunflower raw materials, crude sevabin, animal vaccines, make-up goods, rubber, ornaments, refrigerators etc. have been imported from Ukraine. There is the data that most edible oil (raw material) is imported from Ukraine.

According to the Nepal Vegetable Ghee and Oil Producers Association, 95 percent of the raw material of sunflower is imported from Ukraine. 5 percent is imported from Russia and Argentina. Soybeans are imported from Brazil, USA and Argentina. The price of crude oil increases due to international war. It has a direct impact on edible oil as well," said Amit More, Vice President of Nepal Vegetable Ghee and Oil Producers Association, "Brazil, America and Argentina have said that they will add biodiesel to the production of soybean and soybean raw materials. As the price of crude oil increases, so does the price of diesel. It will also help to increase the price of cooking oil.'

Soybean cultivation is done in 26 thousand hectares in Nepal. According to the data of the Ministry of Agriculture and Livestock Development, about 34 thousand 434 tons are produced annually. Oilseeds (mustard, mustard, sunflower) are cultivated in 261 thousand 432 hectares. It produces 274 thousand 504 tons annually. But domestic demand is not enough. Imports are necessary to meet domestic demand. According to businessmen, in the case of palm oil, the price may decrease. The largest market for palm oil is Iran. Iran is supplied by Malaysia and Indonesia. "There is an obstacle in Iran because of the war. "Malaysia and Indonesia can send to other countries that have stocks, so palm oil can be cheaper," Vice President Mor said, "because of the war, the supply of edible oil will not be affected much, it is imported through Romania." However, the price may increase due to fuel.' In the case of

exports, there is no significant impact. According to the data of the department, the export to that country is negligible. In 8 months, shawls and mufflers worth Rs. Books, felts, carpets, jerseys, jackets, cotton dresses worth 21.7 million 45 thousand have been exported to Israel. Similarly, jewelry, musical instruments, drawings, green tea, black tea, incense sticks, carpets worth 172,354,000 have been exported to Russia and sheepskin worth 193,000 to Ukraine. "The war creates a problem in the goods transported from the Red Sea." It increases the logistic cost. The direct effect of that is that the price of raw materials will increase," said Durgaraj Shrestha, vice president of the Federation of Nepalese Chamber of Commerce and Industry, Wagmati Province, "while importing raw materials, you have to wait for your turn. If you can't import the goods on time, you have to put the goods on hold, they will also be charged, the price will increase up to 30 percent.'

The dispute at the international level has directly affected the prices of petroleum products and gold. The war has put enormous pressure on crude oil prices. According to Nepal Oil Corporation, petrol has increased by 2 rupees 96 paisa and diesel by 3 rupees 46 paisa per liter after the new purchase rate from Indian Oil Corporation (IOC) came on Monday afternoon. The corporation has also increased the price of petrol, diesel and kerosene by three rupees per liter with effect from 12 midnight on Monday. After the price increase, petrol in Kathmandu Valley has remained at Rs 178 per liter and diesel and kerosene at Rs 161 per liter. Similarly, investors have invested in gold due to confusion in business. Due to this, the price has increased in the international market. In Nepal too, the price of gold set a new record and traded at 139,200 rupees per tola on Tuesday.