KATHMANDU, May 22: Nepal's exports have surged to a historic high, thanks largely to a spike in soybean and sunflower oil trade. In the first 10 months of the current fiscal year (mid-July to mid-April), the country exported goods worth about Rs 217.91 billion—the highest export value ever recorded.
The Department of Customs (DoC) reported a 72.71 percent increase in exports compared to the same period last fiscal year. However, trade experts warn that this growth may not be sustainable, as it relies heavily on the export of oil processed from imported crude rather than domestically produced goods.
Compared to the same period last year, Nepal's exports jumped by around Rs 91 billion. Exporters had shipped goods worth Rs 152 billion during that time in fiscal year 2023/24 and Rs 157 billion in 2022/23.
A sharp increase in soybean oil exports fueled this rise. Exporters sold soybean oil worth Rs 78.75 billion in 10 months, making it one of Nepal's top five export items. During the same period, importers brought in vegetable oil and its raw materials worth nearly Rs 120 billion.
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Exporters also shipped sunflower oil worth Rs 10.9 billion, carpets worth Rs 8.84 billion, cardamom worth Rs 6.67 billion, and steel worth Rs 4.79 billion, according to DoC data.
Overall, foreign trade also saw an uptick. The DoC noted that total foreign trade rose by 18.37 percent year-on-year, while imports grew by 13.11 percent. Nepal imported goods worth Rs 1.474 trillion during the review period, up from Rs 1.303 trillion during the same period last year. Total foreign trade reached Rs 1.692 trillion in 10 months.
Nepal's trade deficit widened to Rs 1.256 trillion—an increase of 6.72 percent compared to last year. The country recorded its highest trade deficit with India.
Nepal imported goods worth Rs 880 billion from India but exported only Rs 176 billion, leading to a trade deficit of Rs 704 billion. Similarly, Nepal imported goods worth Rs 277 billion from China while exporting only Rs 2.39 billion, resulting in a trade deficit of Rs 274 billion.
Despite the government's repeated pledges to curb the trade deficit by boosting domestic production, the gap continues to grow. Nepal runs trade deficits with over 130 countries.
Fuel remains the country's most imported commodity. Nepal continues to import diesel, petrol, cooking gas, crude soybean oil, mobile phones, ready-made garments, food grains, and vegetables.
Although the government has adopted a subsidy policy to reduce the deficit and promote exports, the country still relies on imports for many goods that it could have produced locally. This dependency continues to deepen the trade imbalance.
