Nepal’s exports surge 46.50pc to Rs 1 trillion, Soybean Oil leads the charge

KATHMANDU: In a promising development for Nepal’s economy, the country has seen a significant rise in exports during the first seven months (Shrawan to Magh) of the current fiscal year 2081/82. According to data released by the Department of Customs, exports have surged by 46.50% compared to the same period last year, reaching an impressive total of Rs 1 trillion 27 billion .

The standout performer in this export boom has been soybean oil , which accounted for Rs 32 billion 41 crore 61 lakh in exports up to Magh. This marks a substantial increase from the previous year and positions soybean oil as the top export item. Other key contributors include sunflower seeds and oil , with exports worth Rs 6 billion 57 crore , followed by carpets at Rs 6 billion 46 crore , and ginger at Rs 5 billion 39 crore .

This surge in exports is largely attributed to India’s decision to ease restrictions on vegetable oil imports from Nepal under the South Asian Free Trade Area (SAFTA) agreement. Nepali exporters have capitalized on this opportunity, benefiting from zero-tariff exports to India. Meanwhile, India’s imposition of higher tariffs on vegetable oils from other international markets has further boosted Nepal’s competitive edge.

Imports Rise Amid Export Growth

While exports have soared, imports have also increased, albeit at a slower pace. Total imports reached Rs 9 trillion 88 billion 58 crore by Magh, marking a 10.09% increase compared to the same period last year. The largest import item was diesel , valued at Rs 66 billion 48 crore , followed by crude soybean oil at Rs 38 billion 29 crore , and petrol at Rs 37 billion 64 crore .

Other major imports included cooking gas (Rs 35 billion 47 crore ), iron and steel (Rs 80 billion 66 crore ), and electrical machinery (Rs 65 billion 40 crore ). Despite the rise in imports, Nepal’s trade deficit widened only slightly, reaching Rs 8 trillion 61 billion , a 6.20% increase from the previous year.

Record-Breaking Foreign Trade Figures

The combined value of Nepal’s foreign trade has now exceeded Rs 11 trillion , reflecting a 13.30% increase compared to the same period last year. Of this, exports account for Rs 1 trillion 27 billion , while imports make up the remainder. Notably, the share of exports in total trade has grown significantly, rising by 29.30% , while the share of imports decreased by 2.83% .

“The growth in exports, particularly in sectors like vegetable oils, reflects Nepal’s ability to leverage regional trade agreements effectively,” said an official from the Department of Customs. “However, addressing the trade deficit remains a challenge, and efforts must continue to diversify and expand our export base.”

Experts suggest that Nepal’s recent success in boosting exports could serve as a foundation for sustained economic growth. By focusing on value-added products and expanding into new markets, Nepal can further reduce its reliance on imports and improve its trade balance.

As the fiscal year progresses, stakeholders will be closely monitoring whether this upward trend in exports can be maintained and whether Nepal can capitalize on emerging opportunities in global trade.

Key Highlights:

Total exports: Rs 1 trillion 27 billion (up 46.50% YoY)

Top export item: Soybean oil (Rs 32 billion )

Total imports: Rs 9 trillion 88 billion (up 10.09% YoY)

Trade deficit: Rs 8 trillion 61 billion

Total foreign trade: Rs 11 trillion 15 billion (up 13.30% YoY)