Changing Bilateral Trade of Agricultural Commodities between India and Nepal

The study has examined compositional changes and trade performance of agricultural commodities between India and Nepal during the period 2009-10 to 2020-21. The data have been analyzed by using descriptive statistics such as percentages, averages, and CAGRs to ascertain the various objectives of the study. The-agricultural commodities import from India to Nepal showed two different patterns, a steady increase from 2009-10 to 2011-12, then a rapid surge in 2020-21. Nepal’s export to India has increased steadily with a few ups and down. During the study period, the imports rose with a compound annual growth rate of about 21 per cent, whereas increase in exports with about 10 per cent. During 2020-21, almost 94 per cent of the total export of Nepal to India comprised only four commodities, out of which vegetable oils contributed the highest i.e., 66 per cent. During 2017-18, 43 agricultural commodities were imported by Nepal from India, out of which eight commodities accounted for about 82 per cent of the total share, non-basmati rice ranked-first. The results revealed that both countries are equally important to each other in terms of trade and are perfect trading partners. Despite various impediments to trade viz. unauthorized trade, difficult administrative procedure, geographical structure of Nepal affecting revenues for both the countries, the traditional, cultural, geographical, and political relations have helped the trade to flourish, therefore, it is suggested to maintain-the treaty in the overall interest of both countries.