Jute Goods Exports Up 31.3%: Traditional Industry Shows Strong Revival

Published on September 27, 2025

Nepal’s traditional jute industry made a strong comeback in FY 2025/26, with exports of jute goods rising by 31.3 percent. Total shipments reached Rs. 582.5 million in one month, compared to Rs. 443.5 million in the same period of the previous year. Jute goods now account for 2.4 percent of Nepal’s total exports, reaffirming their role as a reliable foreign exchange earner among traditional commodities.

This growth reflects renewed demand in regional and international markets for eco-friendly and biodegradable products. With increasing global emphasis on sustainability, Nepali jute items—such as sacks, ropes, and handicrafts—are gaining recognition as viable alternatives to plastic-based packaging. Unlike woolen carpets (-26.6%) and tea (-30.9%), which suffered sharp declines, the revival of jute highlights the potential of traditional, environmentally friendly industries in Nepal’s trade portfolio.

However, the sector still faces challenges, including low mechanization, dependency on raw material imports, and lack of modern branding. To sustain growth, Nepal must focus on upgrading processing technology, diversifying products, and accessing premium eco-conscious markets abroad.

Loan Restructuring for Gen Z Movement-Affected Businesses

The NRB has announced targeted loan restructuring and rescheduling measures for businesses and borrowers directly impacted by the Gen Z Movement and trade disruptions. Relief measures include restructuring by Poush 2082, concessional interest rates (base +0.5%), higher LTV for vehicles, subsidized salary loans, and export-linked incentives. These initiatives aim to revive businesses, protect jobs, and stabilize Nepal’s economy.