Kathmandu, July 23: Nepal’s foreign trade reached a new high in the fiscal year 2081/82 (2024/25), with both import and export figures hitting record levels, according to the Department of Customs. However, half of the total exports comprised re-exports of imported crude soybean and sunflower oil.
Data released by the department shows Nepal recorded a total foreign trade of Rs 20 Kharb 81 Arba in the last fiscal year. Imports accounted for Rs 18 Kharba 4 Arba, while exports totaled Rs 2 Kharba 77 Arba, resulting in a trade deficit of Rs 15 Kharba 27 Arba. Department Director Kishor Bartoula confirmed that both import and export volumes were the highest ever recorded.
Compared to the previous fiscal year 2080/81, imports rose by 13.25%, and exports increased by a significant 81.80%. Total foreign trade grew by 19.24%, while the trade deficit increased by 6%. Imports made up 86.69% of total trade, with exports accounting for only 13.31%.
Nepal’s largest trade partner remains India, from which Nepal imported goods worth Rs 10 Kharba 71 Arba and exported goods worth Rs 2 Kharba 24 Arba in the last fiscal year—resulting in a trade deficit of Rs 8 Kharba 46 Arba with India alone.
Nepal imported goods worth Rs 3 Kharba 41 Arba from China but exported only Rs 26 Arba 30 Crores. Other countries contributing to a large trade deficit include Argentina, Ukraine, and the United Arab Emirates.
On the positive side, Nepal recorded trade surpluses with countries like Afghanistan, Denmark, the Russian Federation, Romania, Austria, and Laos. The highest surplus was with Afghanistan at Rs 68 crores, followed by Denmark at Rs 33 crores.
Petroleum products were the most imported items. Diesel imports were worth Rs 128 .76 billion, petrol Rs 64.12 billion, and cooking gas Rs 62.58 billion. Nepal also imported smartphones worth NPR 35.54 billion and electric vehicles worth Rs 18.62 billion.
According to the customs data, Nepal imported crude soybean oil worth Rs 108.95 billion and crude sunflower oil worth Rs 29.02 billion. Interestingly, these two products also topped Nepal’s export list.
Soybean oil led the export category with shipments worth Rs 108.79 billion, followed by sunflower oil at Rs 12.32 billion. Other major exports included carpets (Rs 10.77 billion), cardamom (NPR 7.68 billion), churpi (hardened cheese, Rs 4.51 billion), and tea (Rs 4.21 billion).
Director Bartoula noted that in these cases, the value of imported raw materials exceeded the value of exports, with minimal value addition. “Most of the exported oil is derived from imported crude soybean and sunflower oil. This sector has made limited contributions in terms of employment generation and value addition,” he said.
Under the South Asian Free Trade Area (SAFTA) agreement, Nepalese businesses have benefited by conducting basic processing and adding limited value to edible oils, enabling duty-free exports to India. This loophole has been leveraged by Nepalese traders.
While palm oil previously topped Nepal’s export list, India imposed restrictions on palm oil imports from Nepal in late 2020. Since then, the export of soybean oil has surged. #nepal #export #import #trade
