Nepal’s Export Sees Remarkable Growth in FY 2024/25 with Soyabean Oil

Kathmandu, July 9 — Nepal's export sector has seen a robust resurgence in the fiscal year 2024/25, with total exports reaching an estimated Rs. 247.57 billion in the first eleven months—an impressive 77.8% increase compared to the same period in the previous fiscal year, according to the latest trade statistics.

Soyabean Oil Drives Export Boom

The standout performer was Soyabean Oil, registering a dramatic surge to Rs. 93.52 billion, accounting for 37.8% of total exports. This is a staggering rise from just Rs. 874.88 million in the previous fiscal year's same period. Such exponential growth signals a major shift in Nepal’s export composition, likely driven by high external demand and favorable trade arrangements, particularly with India.

Other Top Performing Commodities

Polyester Yarn and Thread followed with Rs. 12.27 billion in exports, marking a 22% growth, while Woolen Carpetremained stable at Rs. 9.77 billion, contributing 3.9% of total exports.

Zinc Sheets saw a drop of 10.2%, falling to Rs. 9.6 billion, despite a strong performance in 2023/24. On the other hand, Jute Goods bounced back with a 19% increase, totaling Rs. 7.36 billion.

Notably, Tea exports surged by 33%, while Oil Cakes, Textiles, and Shoes and Sandals also reported double-digit growth, highlighting broader diversification in Nepal’s export basket.

Sharp Declines in Palm Oil and Readymade Garments

In contrast, Palm Oil exports plummeted by 68.4%, contributing only 0.8% to total exports. This sharp decline could be attributed to changes in import policies of trading partners or shifting regional competition.

Likewise, Readymade Garments and Juice saw contractions of 11.4% and 8.6%, respectively, while Cardamom and Herbs, two traditional Nepali exports, experienced moderate declines.

Top 20 Commodities Dominate Export Share

The top 20 export commodities cumulatively reached Rs. 183.43 billion, accounting for 74.1% of the total exports—more than doubling from the previous year’s Rs. 90.66 billion in eleven months.

Strong Rise in 'Others' Category

The “Others” category—covering smaller or less-consistent export items—reached Rs. 64.14 billion, up by 32%, suggesting growing momentum in non-traditional exports.

Electricity and Aviation Fuel: Mixed Performance

Among additional export sectors, Electricity exports dropped to Rs. 11.26 billion from Rs. 14.05 billion a year ago, while Aviation Fuel exports stood at Rs. 13.70 billion, up from Rs. 12.27 billion, showing moderate improvement.

The significant rise in total exports, particularly led by soyabean oil and diversified industrial products, reflects a positive trajectory for Nepal’s trade sector. However, dependency on a few key commodities and market concentration remain vulnerabilities. Enhancing value chains and market diversification will be key for sustaining long-term growth.