By Sandeep Chaudhary
Soybean Oil Tops Nepal’s Export Chart 2025/26 with Rs 20.4 Billion in Two Months
Nepal’s export performance in the early months of FY 2025/26 has been dominated by one product: soybean oil. According to the Nepal Rastra Bank (NRB) Mid-September 2025/26 report, soybean oil exports surged to Rs 20.42 billion in just two months — making up 43.2 percent of the country’s total export earnings during the review period.
Strong Export Rebound
NRB’s data shows that total exports jumped to Rs 47.32 billion, an 88.6 percent year-on-year increase compared with Rs 25.09 billion in the same period of FY 2024/25. Of this, the top 20 commodities contributed 75.4 percent (Rs 35.68 billion), reflecting a continued concentration in a few key products.
Soybean Oil’s Dominance
Soybean oil’s export volume dwarfs other major items. Despite the absence of major growth from last year’s extraordinary jump, it remains the single most valuable export product, underscoring Nepal’s reliance on processed edible oil re-exports to India and other regional markets.
Following soybean oil, polyester yarn & thread ranked second with Rs 2.07 billion (4.4 percent share), while jute goods recorded Rs 1.61 billion (3.4 percent share)— a 61.1 percent rise from the previous year. Palm oil exports also surged 318.4 percent to Rs 1.36 billion, reflecting renewed industrial demand and improved production capacity.
Diversification and Challenges
Other top performers included cardamom (+43.9 percent), herbs (+44 percent), and noodles (+45.7 percent), pointing to stronger agro-processing and niche export growth. However, traditional exports like woolen carpets (-20.7 percent), tea (-37.2 percent), and zinc sheets (-77.6 percent) suffered declines due to global price fluctuations and demand shifts.
Macro Context
This export surge aligns with Nepal’s broader external-sector recovery. The country’s foreign-exchange reserves hit USD 20.41 billion (Rs 2.88 trillion), sufficient to cover more than 13 months of imports. The Balance of Payments (BOP) remained in surplus at Rs 153.7 billion, supported by a 33 percent rise in remittances. Meanwhile, inflation fell to 1.87 percent, creating a favorable macroeconomic backdrop for trade.
Outlook
While the growth in exports — led by soybean and palm oil — is an encouraging sign of recovery, economists warn that Nepal’s export base remains narrow and vulnerable to policy or price shocks in destination markets. Long-term sustainability will depend on diversifying exports, enhancing manufacturing competitiveness, and adding value to agricultural and industrial goods.
