SATV 23 July, Kathmandu: Nepal’s export trade witnessed a record growth in the last fiscal year 2024/25, breaking all previous records.

According to annual trade statistics made public by the Department of Customs on Tuesday, Nepal exported goods worth Rs. 277 billion during the period. However, the crude edible oils imported from the third countries shared the bigger portion of the exported goods than the home products.  

The export trade surged almost by 82 per cent as compared to previous fiscal year 2023/24 when goods worth only Rs. 152.38 billion were exported.

Earlier, highest-ever export amounted to Rs. 200.03 billion in the fiscal year 2021/22. However, the export trade dropped the following years in 2022/23 and 2023/24.  

Goods worth Rs. 157.14 billion were exported in the fiscal year 2022/23 and Rs. 152.38 billion in the fiscal year 2023/24.

The growth of last fiscal has raised hopes of accelerating Nepal's economic development.

Meanwhile, experts have emphasised the importance of long-term strategies to maintain and build upon the growth. They have suggested expanding international trade partnerships, infrastructure development, and the implementation of business-friendly policies.

Share of edible oils stands at 44%

The increment in the export of edible oils, including soybean and sunflower, has contributed to the swelling of export volume during the review period.

Edible oils worth Rs. 121.53 billion were exported, which is around 43.87 per cent of total export trade. If the export of oils is omitted, the country’s export trade is only Rs. 155.47 billion.

Soybean oil has a large share in this surge in exports. Refined soybean oil accounted for 38.5 per cent of exports last year. 

According to the statistics, soybean oil worth Rs. 106.79 billion was exported during the last fiscal year. In the fiscal year 2023/24, soybean oil worth only worth Rs. 900 million was exported. 

It shows that the export of soybean oil increased by 118 times during the last fiscal year as compared to same period previous fiscal year.

Likewise, export of processed sunflower oil increased to Rs. 12.33 billion in the last fiscal year from Rs. 163 million in the previous fiscal year.

However, exports of palm oil, which has been the largest export in previous years, declined last fiscal year, while exports of soybeans and sunflowers increased significantly.

The palm oil worth only Rs. 2.41 billion was exported in the last fiscal year while it was exported to the tune of Rs. 6.33 billion in previous fiscal year 2023/24.

The oils are processed domestically from crude oil imported mainly from countries such as Argentina, 

Ukraine, Brazil, Paraguay, Thailand, United States, and then re-exported to neighbouring markets, particularly India. 

The country imported crude soybean oil worth Rs. 109.02 billion, palm oil Rs. 12.82 billion and sunflower worth Rs. 29.28 billion during the review period. 

In the meantime, export of readymade garment, carpet, pashmina, tea and coffee and dog chew, among others, increased in the last fiscal year.

Similarly, readymade garments worth Rs. 9 billion, pashmina shawls worth Rs. 3.23 billion, carpets worth Rs. 12.25 billion, tea and coffee worth Rs. 4.8 billion, cardamom worth Rs. 7.68 billion and dog chew worth Rs. 4.51 billion were exported during the last fiscal year.

Trade deficit up

Even though exports have risen significantly, the country's trade deficit has increased due to the higher volume of imports than exports. 

The country imported goods worth Rs. 1,804.12 billion during the last fiscal year. This is 13.25 per cent higher than import of goods in the previous fiscal year.

The country imported petroleum products worth Rs. 275 billion, including diesel worth Rs. 128.7 billion, petrol worth Rs. 64.12 billion, LPG worth Rs. 62.58 billion and aviation fuel worth Rs. 18.79 billion in the last fiscal year.

Similarly, the country imported cereals worth Rs. 394 billion during the last fiscal year. 

Out of this, rice and paddy worth Rs. 40 billion and maize worth Rs. 19.27 billion were imported.

According to the statistics, trade deficit increased by 6 per cent to Rs. 1,527.09 billion during the review period. 

The country had faced a trade deficit of Rs. 1,440.60 billion during the previous fiscal year 2023/24. 

Similarly, the country’s foreign trade volume has reached Rs. 2,081.15 billion during the review period which is 19.24 per cent more than the previous year.