Nepal Trade: Rs 56 Billion Oil Exports, 57% Surge, Rs 987B Deficit
27th March 2025, Kathmandu
Nepal has recorded a massive 57.20% increase in exports, with cooking oil shipments alone worth Rs 56 billion in the first eight months of fiscal year 2024/25 (mid-July 2024 to mid-March 2025).
Nepal Trade 56 Billion Oil Exports
This growth comes as Nepal imports crude oil, refines it domestically, and re-exports processed edible oil—a business model boosting foreign trade.
Key Highlights from Nepal’s Trade Report
Total Exports (8 months): Rs 158.17 billion
Top Export Products:
Soya bean oil – Rs 47.94 billion
Sunflower oil – Rs 7.98 billion
Cardamom – Rs 5.83 billion
Carpets – Rs 4.32 billion
Trade Deficit Widens to Rs 987.39 billion
Total Imports: Rs 1,145.56 billion
Major Imports:
Diesel – Rs 78.86 billion
Petrol – Rs 42.80 billion
LPG – Rs 41 billion
Smartphones – 1.4 million units (Rs 21.91 billion)
Why is Nepal’s Cooking Oil Export Thriving?
1. Value Addition Strategy
Nepal imports crude edible oil, processes it locally, and exports refined oil, boosting export revenues.
Soya bean oil dominates (Rs 47.94B), followed by sunflower oil (Rs 7.98B).
2. Growing Demand in Regional Markets
Refined oil exports cater to neighboring markets, including India and China.
Competitive pricing and quality improvements drive demand.
3. Government & Private Sector Push
Policies supporting agro-processing industries.
Investments in refining capacity expansion.
Nepal’s Trade Deficit: A Major Concern
Despite export growth, Nepal’s trade deficit reached Rs 987.39 billion, with:
India: Rs 563.67 billion deficit (Imports: Rs 688.68B | Exports: Rs 125B)
China: Rs 21.70 billion deficit (Imports: Rs 219.18B | Exports: Rs 2.12B)
Other High-Deficit Trade Partners: Argentina, UAE, Ukraine, Australia
Biggest Import Categories
Petroleum Products – Rs 162.66 billion (Diesel, Petrol, LPG)
Electronics – Rs 21.91 billion (Smartphones)
Vehicles – Rs 11.80 billion (EVs + others)
Silver Lining: Trade Surplus with 34 Countries
While deficits dominate, Nepal enjoys a trade surplus with:
Afghanistan, Denmark, Russia, Austria, Maldives
Mostly from cardamom, carpets, and niche agro-products.
The Way Forward: Can Nepal Reduce Its Trade Deficit?
1. Expand Value-Added Exports
More edible oil refining
Promote herbal & agricultural products
2. Reduce Reliance on Costly Imports
Boost domestic fuel production
Encourage local smartphone manufacturing
3. Strengthen Trade Agreements
Better terms with India & China
Diversify export markets
Final Verdict: A Mixed Trade Picture
Nepal’s processed cooking oil exports are booming (Rs 56B), showing potential in value-added industries. Challenge: Rs 987.39B trade deficit remains a hurdle, requiring policy reforms & industrial growth.
Key Takeaway:
Nepal must capitalize on its edible oil export success while tackling import dependency.
Smart investments in local production could help balance trade.
For more: Nepal Trade 56 Billion Oil Exports
