Trade volume hits Rs. 2.4 trillion, with scant 13% exports

Kathmandu, July 24: Nepal has achieved a historic milestone in merchandise exports, with the country's goods exports surpassing Rs. 300 billion for the first time in the fiscal year 2025/26.

According to the annual foreign trade statistics released by the Department of Customs on Thursday, the country exported goods worth Rs. 315.29 billion during the last fiscal year, marking the highest annual export value in the country's history. The latest export figure represents a 13.81 per cent increase from Rs. 277.03 billion recorded in the previous fiscal year 2024/25, continuing the upward momentum in the country's export sector.

The country has witnessed a strong recovery in merchandise exports over the past two fiscal years. In FY 2024/25, exports had surged by nearly 82 per cent compared to FY 2023/24, when exports stood at Rs. 152.38 billion.

Goods worth Rs. 200.02 billion were exported in the fiscal year 2021/22. After that, the export of goods had dropped in the corresponding period of 2022/23 and 2023/24.  Goods worth Rs. 157.14 billion had been exported in the fiscal year 2022/23 and Rs. 152.38 billion in the fiscal year 2023/24.

Edible oils dominate exports

The increment in the exports of processed agricultural products, edible oils, carpets, textiles, tea, cardamom and other manufactured goods have contributed to export growth in recent years.

However, the historic export growth was driven largely by a sharp rise in shipments of processed edible oils and agricultural commodities during the review period.

Edible oils worth Rs. 149 billion were exported, which is around 47 per cent of total export trade. 

Soybean oil has a large share in this surge in exports. Refined soybean oil accounted for 40.86 per cent of total exports last fiscal year. 

According to the statistics, soybean oil worth Rs. 128.74 billion was exported during the last fiscal year. In the fiscal year 2024/25, soybean oil worth Rs. 106.79 billion was exported. 

It shows that the export of soybean oil increased by 20 per cent during the last fiscal year as compared to same period previous fiscal year.

Likewise, the country exported processed sunflower worth Rs. 8.94 billion, and palm oil worth Rs. 8.37 billion in the last fiscal year.

The oils are processed domestically from crude oil imported mainly from different countries.

Apart from edible oils, exports of several traditional and manufactured products, including readymade garment, carpet, pashmina, tea and coffee, cardamom and dog chew, among others, increased during the fiscal year.

Similarly, readymade garments worth Rs. 9.28 billion, pashmina shawls worth Rs. 3.79 billion, carpets worth Rs. 10.38 billion, tea and coffee worth Rs. 4.12 billion, cardamom worth Rs. 12.64 billion, felt worth Rs. 5.97 billion and dog chew worth Rs. 4.81 billion were exported during the last fiscal year. 

Likewise, ginger worth Rs. 1.50 billion was exported during the last fiscal year. 

Trade deficit continues to widen 

Despite the record export earnings, the country's import bill continued to rise sharply, widening the trade deficit.

The country imported goods worth Rs. 2,096.37 billion during the review period, an increase of 16.20 per cent from Rs. 1,804.12 billion in the previous fiscal year. 

As a result, the country's trade deficit widened by 16.63 per cent to Rs. 1,781.08 billion.

Total foreign trade reached Rs. 2,411.66 billion, representing a growth of 15.88 per cent compared to previous fiscal year.

Exports accounted for only 13.07 per cent of total foreign trade, while imports made up 86.93 per cent. 

Petroleum products remained the country's largest import category during the review period, with imports totalling Rs. 332.277 billion.

This included diesel worth Rs. 172.42 billion, petrol worth Rs. 72.26 billion, aviation fuel worth Rs. 26.64 billion, kerosene worth Rs. 677 million, and liquefied petroleum gas (LPG) worth Rs. 60.28 billion. The country also imported significant quantities of crude edible oils, including crude soybean oil worth Rs. 132.76 billion, crude sunflower oil worth Rs. 21.77 billion, and crude palm oil worth Rs. 13.73 billion.

Imports of cereals reached Rs. 59.66 billion during the fiscal year, including paddy and rice worth Rs. 39.89 billion and maize worth Rs. 12.41 billion.

According to the Department, the country imported electric vehicles, including three-wheelers and four-wheelers, worth Rs. 28.54 billion, smartphones worth Rs. 48.69 billion, and gold and silver worth Rs. 61.90 billion during the last fiscal year.