Soybean Oil Drives Export Boom: Rs. 10.7 Billion in Shipments to India

Nepal’s export performance to India in FY 2025/26 has been overwhelmingly shaped by soybean oil, which alone accounted for Rs. 10.7 billion in one month’s shipments. This makes soybean oil the largest single contributor to Nepal’s export basket, representing more than half of total monthly exports to India. The surge highlights Nepal’s growing dependence on agro-based re-exports, particularly edible oils that are processed and shipped across the border.

The massive rise in soybean oil exports reflects India’s high demand for edible oils, coupled with Nepal’s tariff and re-export advantages under bilateral trade arrangements. However, while soybean oil has boosted foreign exchange earnings, this heavy reliance creates structural vulnerabilities. Any policy shifts in India, changes in global edible oil prices, or restrictions on re-export could significantly disrupt Nepal’s trade balance.

This export boom also overshadows traditional sectors like carpets, tea, and handicrafts, which continue to face declines. The dominance of soybean oil signals short-term gains but underlines the urgent need for export diversification to reduce dependence on a single commodity.