Crude Soybean Oil Becomes Nepal’s Second-Largest Import with Rs 21.6 Billion in Two Months

Published on October 26, 2025

Nepal’s dependency on edible oil imports has deepened in the early months of FY 2025/26, with crude soybean oilemerging as the second-largest import commodity, according to the Nepal Rastra Bank (NRB) Mid-September 2025/26 report. In just two months, Nepal imported Rs. 21.64 billion worth of crude soybean oil, reflecting the growing domestic demand for refined cooking oil and the expanding capacity of local refining industries.

While petroleum products maintained their position as Nepal’s top import, amounting to Rs. 39.57 billion (13% share of total imports), crude soybean oil followed closely, contributing 7.1% of the total import value. The sharp rise in soybean oil imports — up significantly from Rs. 2.36 billion during the same period last fiscal year — highlights the country’s increasing reliance on imported raw materials for edible oil production.

This import surge is linked to Nepal’s re-export-oriented edible oil industry, which imports crude oil primarily from countries like Argentina, Brazil, and Malaysia for refining and subsequent export to India. The domestic refineries in the Terai region, particularly in Birgunj and Bhairahawa, have been major drivers of this growth. Despite the rise in import value, the industry remains a key contributor to Nepal’s export earnings, as refined soybean oil continues to top Nepal’s export list — recording Rs. 20.4 billion in exports during the same two-month period of FY 2025/26.

The data also points to a growing trade interdependency between Nepal and India, with the majority of refined oil exports directed southward. However, the high volume of crude oil imports contributes to the overall trade deficit, even as it supports Nepal’s industrial output and employment generation in the processing sector.

Economists note that while the edible oil trade has helped boost short-term export numbers, it underscores Nepal’s structural reliance on imported raw materials. They emphasize the need for diversification toward agro-based and value-added industries that can sustain export growth without inflating import costs.

NRB Report: Labour Migration to Saudi Arabia and Qatar Declines, Japan and Oman Surge

Overall, Nepal’s foreign-employment market continues to grow, though the direction of flow is changing. Declines in Saudi Arabia and Qatar are offset by sharp increases in Japan, Oman, and non-traditional markets, marking a gradual transition toward higher-skill and diversified overseas employment opportunities.

UAE Remains Top Job Destination for Nepali Workers with 37,381 Migrants in 2025/26

In FY 2025/26, the UAE remained Nepal’s top job destination, hosting 37,381 Nepali workers in the first two months alone — a 40% year-on-year increase. The Gulf region continues to absorb the majority of Nepali labor, with strong growth also seen in Japan and Cyprus. Total labor migration approvals (new and renewal) exceeded 136,000 during the review period.

Nepal’s Foreign Employment Rises 17.9% in FY 2025/26 – Over 90,000 Workers Leave in Two Months

In the first two months of FY 2025/26, Nepal sent 90,198 new workers abroad, up 17.9% year-on-year. The UAE, Saudi Arabia, and Qatar remained the top destinations, while Japan and Cyprus showed growth. Including renewals, total foreign employment reached 1.36 lakh workers, highlighting Nepal’s ongoing dependence on labor migration for income and remittance.

NRB Report: Nepal’s Trade with China Expands Sharply as Industrial Imports Rise 32%

Nepal’s trade with China surged in early FY 2025/26, with imports up 25.1 percent to Rs 65.17 billion, led by a 32 percent rise in industrial imports. Key drivers included telecommunication equipment, fertilizers, solar panels, and machinery, marking a shift toward industrial investment — but also highlighting growing trade imbalance concerns.

Nepal Increases Imports of Telecommunication Equipment and Machinery from China by 52%

Nepal’s imports from China climbed to Rs 65.17 billion in the first two months of FY 2025/26, up 25 percent year-on-year, led by a 52.6 percent rise in telecommunication equipment and strong demand for industrial machinery. The surge reflects rising investments in technology and infrastructure but also adds to Nepal’s trade-deficit challenge.

Solar Panels, Wheat Products, and Chemical Fertilizer Drive Nepal-China Trade Growth

In FY 2025/26, Nepal’s imports from China climbed 25%, totaling Rs 65.17 billion, driven mainly by solar panels, wheat products, and chemical fertilizers. The surge highlights industrial recovery and the country’s push toward renewable energy, though it also increases Nepal’s trade deficit risk due to heavy reliance on Chinese imports.

NRB Data: Nepal’s Imports from China Reach Rs 65.2 Billion in Two Months, Up 25%

In the first two months of FY 2025/26, Nepal’s imports from China climbed 25 percent, totaling Rs 65.2 billion. Growth was led by telecom equipment, fertilizers, solar panels, and PVC compounds, showing rising industrial and technology demand. While the expansion reflects economic momentum, it also deepens Nepal’s import dependency and trade-deficit concerns.

Nepal’s Imports from China Surge 25.1% in FY 2025/26 – Electronics and Machinery Lead Growth

Nepal’s imports from China climbed 25.1% in the first two months of FY 2025/26, reaching Rs. 65.17 billion, led by telecom equipment, fertilizers, machinery, and solar panels. This surge cements China’s role as Nepal’s second-largest trade partner and reflects rising industrial and technological demand.

Nepal Sees Import Boost in Vehicles (+33%) and Rice/Paddy (+68%) from India in 2025/26

In FY 2025/26, Nepal’s imports from India rose 8% to Rs. 173.54 billion, driven by strong growth in vehicle imports (+33%) and rice/paddy imports (+68%). The rise indicates revived consumer demand and agricultural dependency but also reinforces concerns about Nepal’s widening trade deficit with India.