Nepal’s export trade, which had faced continuous declines during the first three months of the current fiscal year, showed signs of recovery in the fourth month.
According to the Department of Customs, exports increased by 4.16% to reach Rs. 52.67 billion during the first four months of the fiscal year 2024/25 (mid-July to mid-November). This marks an improvement compared to the Rs. 50.56 billion exported during the same period last fiscal year.
In the initial months of the current fiscal year, exports had declined sharply:
- 9.63% in the first month (mid-July to mid-August)
- 5.12% in the second month (mid-August to mid-September)
- 6.11% in the third month (mid-September to mid-October)
Despite this progress, the trade imbalance remains significant, with the export-to-import ratio at 1:9.75, slightly better than 1:10.14 in the previous year. Exports account for only 9.30% of total trade, while imports dominate with 90.70%.
Key Export Commodities
Increased exports of soybean oil, sunflower oil, tea, and coffee have driven this improvement.
- Soybean oil: Rs. 3.41 billion (up from Rs. 144 million last year)
- Palm oil: Rs. 525 million (down from Rs. 1.88 billion last year)
- Sunflower oil: Rs. 1.50 billion (up from Rs. 114 million last year)
- Carpet: Rs. 3.9 billion (similar to Rs. 3.94 billion last year)
- Tea and coffee: Rs. 2.32 billion (up from Rs. 1.49 billion last year)
- Cardamom: Rs. 1.90 billion (down from Rs. 2.15 billion last year)
Trade Deficit Narrows
Imports rose marginally by 0.17%, reaching Rs. 513.38 billion compared to Rs. 512.50 billion in the same period last year. This contributed to a 0.26% reduction in the trade deficit, which now stands at Rs. 460.71 billion.
Foreign Trade Volume
Nepal’s total foreign trade volume reached Rs. 566.05 billion, a 0.53% increase from last year.
Key Imports
Petroleum products remain Nepal’s most significant imports:
- Diesel: Rs. 29.04 billion
- Petrol: Rs. 21.56 billion
- LPG: Rs. 18.85 billion
- Aviation fuel: Rs. 6.55 billion
- Kerosene: Rs. 325 million
Other major imports include:
- Crude soybean oil: Rs. 7.24 billion
- Crude palm oil: Rs. 3.61 billion
- Crude sunflower oil: Rs. 9.60 billion
- Electric vehicles: Rs. 8.73 billion
- Cereals: Rs. 10.58 billion
Nepal’s improving export performance and controlled import growth provide a glimmer of hope for reducing the trade deficit as the fiscal year progresses.
