Soyabean Oil Emerges as Nepal’s Top Export Performer

Nepal’s foreign trade dynamics have seen a remarkable transformation in the first nine months of the fiscal year 2024/25, particularly in the export sector. According to the latest report titled “Exports of Major Commodities”, there have been both surges and declines across various products when compared to the same period in 2023/24.

The most striking development is the explosive growth in Soyabean Oil exports, which soared from just Rs. 828.88 million in 2023/24 to a staggering Rs. 62,781.91 million in 2024/25. This increase of over 7,477% marks a significant diversification and shift in Nepal’s export structure, possibly driven by changing global demand, favorable pricing, or a new export agreement.

Among the traditionally strong exports, Polyster Yarn & Thread rose to Rs. 9,910.66 million from Rs. 8,250.75 million, showing steady growth. Woolen Carpet, a legacy export product of Nepal, increased marginally to Rs. 8,094.12 million from Rs. 7,816.45 million, reflecting consistent demand in international markets.

However, Zinc Sheet exports dropped to Rs. 7,441.56 million from Rs. 8,575.28 million, and Cardamom, a key high-value agro export, saw a slight dip from Rs. 6,283.14 million to Rs. 6,251.26 million. Other agro-based commodities such as Jute Goods and Particle Board performed well, rising to Rs. 5,904.82 million and Rs. 5,931.84 million respectively.

On the other hand, Readymade Garments, which once stood as a robust pillar of Nepal’s export sector, declined to Rs. 4,258.59 million from Rs. 4,749.45 million, hinting at challenges in global apparel markets or competitiveness. Teaexports, however, increased significantly from Rs. 2,531.31 million to Rs. 3,561.07 million, signaling renewed interest and potential for growth in this sector.

Palm Oil, which had seen massive exports in previous years, sharply declined to Rs. 1,837.74 million from Rs. 5,714.37 million—possibly due to stricter regulations, reduced demand, or a shift in focus to more lucrative commodities like soyabean oil.

Other noteworthy changes include:

• Oil Cakes increased to Rs. 2,706.60 million from Rs. 2,161.03 million.

• Pashmina exports went up slightly to Rs. 2,332.78 million.

• Textiles, Rosin, Shoes and Sandals, and Noodles all showed positive growth.

• Conversely, Herbs, Ayurvedic Medicine, and Musical Instruments saw marginal decreases or modest growth.

Overall, this shift reflects both evolving domestic production capacities and changing global market opportunities. The diversification away from traditional products like garments and palm oil toward agricultural and semi-industrial goods like soyabean oil and yarn suggests Nepal is adjusting to global market signals. If current trends continue, 2024/25 could become a turning point for the Nepali export economy.