Nepal’s edible oil exports surge to Rs 56 billion in eight months

KATHMANDU: Nepal has exported edible oil worth approximately Rs 56 billion in the last eight months, marking a significant increase driven by the import of raw materials, value addition, and re-export.

According to the latest foreign trade statistics released by the Customs Department for the current fiscal year up to February, Nepal’s exports have surged by 57.20% compared to the same period last year, while imports have risen by 11.20%.

Edible oil remains the dominant export product, contributing substantially to the country’s overall exports.

Out of Nepal’s total exports worth Rs 158 billion, soybean oil accounted for Rs 47.94 billion, followed by sunflower oil at Rs 7.98 billion. Other major exports included cardamom (Rs 5.83 billion) and carpets (Rs 4.32 billion).

Despite the increase in exports, Nepal continues to struggle with a widening trade deficit. In the second quarter of the current fiscal year, the country incurred a trade loss of Rs 987.39 billion out of a total trade volume of Rs 1,133.73 billion. Imports stood at Rs 1,145.56 billion, while exports reached only Rs 158.17 billion.

The trade deficit with India alone amounted to Rs 563.67 billion, with imports from India reaching Rs 688.68 billion and exports totaling Rs 125 billion.

Nepal also reported a significant trade imbalance with China, importing Rs 219.18 billion worth of goods while exporting just Rs 2.12 billion, resulting in a deficit of Rs 217.06 billion.

Nepal has also recorded trade deficits with Argentina, Ukraine, the United Arab Emirates, and Australia. However, it has achieved a trade surplus with 34 countries, including Afghanistan, Denmark, Russia, Austria, and the Maldives.

Among imports, petroleum products remain a major expense. In the past eight months, Nepal imported diesel worth Rs 78.86 billion, petrol worth Rs 42.80 billion, and liquefied petroleum (LP) gas worth Rs 41 billion. Meanwhile, electric vehicle imports totaled Rs 9.69 billion, and other vehicles amounted to Rs 2.11 billion.

The demand for electronic devices has also remained high, with Nepal importing 1.4 million smartphones worth Rs 21.91 billion during this period, the report stated.