Nepal's Import of Major Commodities Surges by 13.1% in FY 2024/25

Kathmandu, July 9 – Nepal witnessed a notable rise in its total imports in the first eleven months of fiscal year 2024/25, reaching Rs. 1.64 trillion, up by 13.1% compared to the same period last year, as per data released by the customs authority. The increase reflects a strong rebound in the import of key commodities, especially crude soybean oil, transport equipment, and edible oil.

Petroleum Leads but Declines Slightly

Petroleum products continued to dominate Nepal’s import basket, accounting for 15.9% of total imports. However, their value dipped by 4.5% to Rs. 261.2 billion. Despite being the largest single import, this drop indicates a possible reduction in domestic consumption or improved energy efficiency.

Massive Surge in Crude Soybean Oil Imports

Crude soybean oil imports skyrocketed by a staggering 627.8%, making it the second-largest import commodity. The import value jumped from Rs. 13.4 billion in the previous year to Rs. 94.8 billion in 2024/25. This increase could be attributed to shifting domestic demand, reduction in customs duty, or decreased production of alternative edible oils.

Transport Equipment & Machinery Fuel Growth

Imports of transport equipment and spare parts rose by 20.2%, totaling Rs. 86.6 billion. Similarly, imports of other machinery and parts also grew by 6.4% to Rs. 74.4 billion. These numbers reflect increased infrastructural activity and domestic industrial consumption.

Rise in Agricultural and Industrial Goods

Rice and paddy imports surged by 83.7% to Rs. 38.5 billion, likely due to poor domestic harvests or rising consumption. Likewise, the import of sponge iron used in steel industries increased by 30.1% to Rs. 45.7 billion. Edible oil imports rose by 72.6%, while electrical goods and thread showed growth of 24.2% and 14.6% respectively.

Decline in Gold and Electrical Equipment Imports

Conversely, imports of gold dropped sharply by 23% to Rs. 19.8 billion, possibly due to tighter regulations or subdued demand. Similarly, electrical equipment imports declined by 11.2%, suggesting decreased activity in large-scale electrification projects or cost-cutting across sectors.

Top 20 Commodities Make Up Nearly 60%

The top 20 imported commodities constituted 59.6% of total imports, amounting to Rs. 980.4 billion. The remaining 40.4% (Rs. 664.4 billion) comprised miscellaneous other items, which together show a balanced diversification in Nepal's import structure.

Electricity Imports on the Decline

Electricity imports also fell from Rs. 15.2 billion last year to Rs. 11.0 billion this year, hinting at improved domestic generation capacity, likely through hydropower expansion.

Nepal's growing import dependency in high-value commodities such as crude oils, vehicles, and machinery signals increasing consumer demand and industrial activity. However, the decline in gold and electricity imports points towards prudent consumption and energy self-reliance. Policymakers may need to balance trade priorities while ensuring fiscal discipline amid rising import bills.