Nepal recorded a modest decline in food imports during the first seven months of the current fiscal year (FY) 2025/26, according to data released by the Department of Customs. Although the reduction in imports is relatively small, it has led to a notable decrease in government revenue collected from the sector.
Data show that Nepal imported food items worth Rs 35.62 billion between mid-July and mid-February of the ongoing fiscal year. During the same period in FY 2024/25, food imports totaled Rs 36.35 billion, indicating a decline of about Rs 730 million this year.
While the drop is not significant in absolute terms, it is viewed as a minor indication of progress in reducing Nepal’s long-standing reliance on imported food. In recent years, the country has depended heavily on imports of staple commodities such as rice, wheat, maize, and pulses, largely due to stagnant domestic agricultural production.
Food exports, on the other hand, showed encouraging growth, though from a very low base. During the seven-month review period, food exports reached Rs 5.46 million, compared to Rs 2.23 million in the same period last fiscal year—more than doubling year-on-year. Despite this improvement, export volumes remain extremely small and have had minimal impact on narrowing the trade gap.
As a result, Nepal’s food trade deficit stood at Rs 35.57 billion during the review period, slightly lower than the Rs 36.33 billion recorded during the same period last year. The figures suggest that although the deficit has narrowed marginally due to reduced imports, structural challenges in Nepal’s food trade continue.
Government revenue from food imports has also dropped sharply. In the first seven months of FY 2025/26, the government collected Rs 2.27 billion in revenue from food imports, compared to Rs 3.22 billion during the same period last year—a decline of more than Rs 1 billion.
Analysts attribute the fall in revenue to several factors, including changes in the types of food being imported, revisions in customs duties, fluctuations in global food prices, and exchange rate movements. A rise in the import of lower-priced food items may also have contributed to reduced revenue collection.
Overall, the latest data show a slight decrease in food imports and a modest rise in exports. However, Nepal’s food trade deficit remains substantial, and the decline in revenue adds further pressure on government finances. Experts say that without stronger policies to boost domestic agricultural production, reduce dependence on imports, and expand exports, the country’s structural imbalance in food trade will likely persist in the long run.
