Nepal exported edible oil worth approximately Rs 56 billion in the last eight months, driven by the import of raw materials, local processing, and value addition before selling the refined products abroad.
According to foreign trade data published by the Department of Customs (DoC) for mid-March in the current fiscal year, imports increased by 11.20 percent, while exports saw a remarkable rise of 57.20 percent compared to the same period last year. This indicates that a significant portion of Nepal’s exports comprises edible oil.
During this period, Nepal’s total exports amounted to Rs 158 billion, with key export commodities including Rs 47.95 billion worth of soybean oil, Rs 7.98 billion worth of sunflower oil, Rs 5.84 billion worth of cardamom, and Rs 4.32 billion worth of carpets.
Despite the growth in exports, Nepal’s total foreign trade reached Rs 1.3 trillion, resulting in a massive trade deficit of Rs 987.39 billion. In the last eight months alone, the country imported goods worth Rs 1.145 trillion while exporting goods worth only Rs 158.17 billion.
Nepal has experienced a trade deficit of Rs 563.67 billion with India, having imported goods worth Rs 688.68 billion and exported Rs 125 billion. Similarly, with China, Nepal incurred a trade deficit of Rs 21.7 billion, importing Rs 219.18 billion worth of goods while exporting only Rs 2.12 billion. The country also faces trade imbalances with Argentina, Ukraine, the United Arab Emirates, and Australia. However, Nepal has recorded trade surpluses with 34 nations, including Afghanistan, Denmark, Russia, Austria, and the Maldives.
Additionally, Nepal continues to rely heavily on petroleum imports. Over the last eight months, the country imported Rs 78.86 billion worth of diesel, Rs 42.80 billion worth of petrol, and Rs 41 billion worth of LPG. The data also shows that Nepal imported Rs 9.69 billion worth of electric vehicles and Rs 2.11 billion worth of other vehicles. Furthermore, Nepal imported 1.478 million smartphones worth Rs 21.92 billion during this period.
While Nepal’s edible oil exports have surged, the growing trade deficit highlights the country’s continued dependence on imports, underscoring the need for diversified and sustainable export strategies.
