{"id":20090481,"date":"2022-05-26T12:30:00","date_gmt":"2022-05-26T07:00:00","guid":{"rendered":"https:\/\/www.thethirdpole.net\/?p=90481"},"modified":"2022-06-06T18:14:02","modified_gmt":"2022-06-06T12:44:02","slug":"how-a-seed-encapsulates-nepal-china-trade-imbalance","status":"publish","type":"post","link":"https:\/\/dialogue.earth\/en\/business\/how-a-seed-encapsulates-nepal-china-trade-imbalance\/","title":{"rendered":"How a seed encapsulates Nepal\u2019s trade imbalance with China"},"content":{"rendered":"\n

Hindus believe the rudraksha, the dried seeds of the Elaeocarpus ganitrus<\/em> tree that grows in the foothills of the Himalayas, are made from the tears of Lord Shiva and hold them sacred. While there is no such story in Buddhism, the depiction of the Buddha, like many sacred figures in the region, wearing rudraksha beads has made them special to Buddhists as well. Nepali traders used to largely sell the seeds to Hindus in India, but this has changed in recent years.<\/p>\n\n\n\n

For 27-year-old Nima Tamang, the seeds mean business with the Chinese. \u201cI sold 10,000 kilograms of seeds to the Chinese in 2020,\u201d he says, up from a previous yearly average of 2,000-3,000 kg, earning 3.5 million Nepali rupees (USD 28,000).<\/p>\n\n\n\n

Since 2014, Nepali farmers and traders have capitalised on Chinese demand for rudraksha and bodhichitta seeds, which Buddhists use as prayer beads<\/a>. The market for both products is a microcosm of the overall trade dynamics between the two countries, in which Nepal exports raw materials and has little leverage over trade mechanisms.<\/p>\n\n\n\n

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Deepening bilateral ties in the past decade meant Chinese buyers could purchase the seeds directly from farmers and middlemen like Tamang. But Tamang\u2019s financial success in 2020 was not to last: Chinese travel restrictions to stop the spread of Covid-19 resulted in a sharp drop in demand and prices, leading to Nepali farmers and traders suffering massive losses. Nepal\u2019s lack of policy focussed on such trade has meant there is not much sellers can do but wait for the Chinese buyers to return.<\/p>\n\n\n\n

Skewed Nepal-China trade balance<\/h2>\n\n\n\n

The overall trade balance between the two countries skews heavily in favour of China. Nepal imported<\/a> NPR 211 billion (USD 1.7 billion) from China between mid-July 2021 and mid-April 2022, according to Nepal\u2019s Department of Customs. In contrast, Nepal\u2019s exports to China were NPR 622 million (USD 5 million) in this period. <\/p>\n\n\n\n

Nepal\u2019s main exports to China are carpets, medicinal plants, hand-drawn paintings and sculptures. Rudraksha seeds were the 10th most valuable export category in the 2020-21 fiscal year, with the country exporting 280,874 kg.<\/p>\n\n\n\n