Kathmandu, June 24 -- Nepal's export earnings from China registered a steep 29 percent drop year-on-year in the first 10 months of the fiscal year following a fall in shipments of major exportable items like carpet, leather goods and handicraft items.

According to Nepal Rastra Bank, exports to the northern neighbour in the first 10 months were valued at Rs1.78 billion, down from Rs2.52 billion during the same period last year.

Export earnings from China had been rising for the past few years. Revenues in the first 10 months of the last fiscal year were almost double compared to the previous year.

China provides duty-free, quota-free market access to 8,030 Nepali products. They include cooking utensils, outfits, footwear, tooth paste an...