Kathmandu, 22 Jul: Nepal witnessed a significant surge in export trade during the last fiscal year (2081/82), recording a historic growth rate.
In a single year, Nepal exported goods worth Rs. 277 billion to international markets. In contrast, during the previous fiscal year (2080/81), the total export was only Rs. 152 billion. This marks an export growth of approximately 82 percent.
Such a sharp rise in exports had not been recorded in any previous fiscal year. According to available customs data, the last notable export growth was seen in fiscal year 2040/41 with a 50 percent increase, followed by 60 percent growth the next year—back in fiscal year 2031/32.
In terms of export value, the last peak was in fiscal year 2078/79, when exports crossed Rs. 200 billion. However, exports declined by 21 percent and 3 percent respectively in the two years that followed.
This fiscal year, however, saw a remarkable rebound. During 2080/81, the average monthly export stood at Rs. 13.66 billion. In contrast, the most recent fiscal year (2081/82) recorded an average monthly export of over Rs. 23.08 billion. Since Falgun 2081 (February–March 2025), Nepal has consistently exported goods worth over Rs. 30 billion each month.
A major factor behind the sharp rise in exports is the significant contribution of soybean oil. In the past fiscal year, refined soybean oil alone accounted for over 38 percent of Nepal’s total exports. During this period, Nepal exported refined soybean oil worth Rs. 106 billion. In contrast, only Rs. 900 million worth of such oil was exported in the previous fiscal year (2080/81).
The crude soybean oil was imported from countries such as Argentina, Brazil, Indonesia, Iraq, Thailand, and Ukraine. The refined edible oil was then sold to India. In the last fiscal year, Nepal imported crude soybean oil worth Rs. 108 billion.
In Bhadra last year, India increased customs duties on edible oil imports by 20 percentage points. This made oil imported from other countries more expensive in the Indian market. However, under the Nepal-India trade agreement, Nepal enjoys duty-free access to export such oil to India—provided that a minimum of 30 percent value is added to the imported raw material.
As a result, Nepal’s monthly export value of soybean oil surged to around Rs. 16 billion. However, in Jestha 2082 (May–June 2025), India reduced the import duty on soybean oil coming from third countries, leading to a slight drop in Nepal’s monthly export volume. In Ashar (June–July), Nepal exported soybean oil worth Rs. 11 billion. Still, soybean oil accounted for 36 percent of total exports during that month.
Alongside soybean oil, exports of refined sunflower oil have also seen a notable increase. In the fiscal year 2081/82, Nepal exported Rs. 12.32 billion worth of refined sunflower oil, a massive jump from just Rs. 360 million in the previous fiscal year.
Nepal imports crude sunflower oil from countries like China, Malaysia, Spain, Vietnam, and Ukraine. The refined edible oil is then exported primarily to India.
While soybean and sunflower oil exports have surged, palm oil exports—once Nepal’s top export item—have declined this year. According to traders, disputes regarding customs classification are the main reason behind the drop in palm oil exports. They also reported that even the current stock of palm oil remains unsold. This year, Nepal exported only Rs. 2.41 billion worth of palm oil.
Beyond edible oils, exports of yarn have also risen significantly. Over the past year, yarn exports grew by 22 percent, reaching Rs. 14.36 billion.
Other export items based on Nepali raw materials—such as veneer sheets, jute-based fabrics, pet food, and tea—also saw growth in the past fiscal year. Specifically:
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Jute-based fabrics: Rs. 6.30 billion
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Veneer sheets: Rs. 2.06 billion
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Pet food (for dogs and cats): Rs. 4.51 billion
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Tea: Rs. 4.59 billion
In contrast, construction materials, which had seen high export levels in fiscal year 2080/81, recorded a sharp decline in exports this past year.
