NRB Data: Nepal’s Major Exports Double as Palm Oil and Jute Goods Boom

Nepal’s export sector has shown an extraordinary rebound in FY 2025/26, with total exports nearly doubling (up 88.6%) compared to the same period last year, according to the Nepal Rastra Bank (NRB) Mid-September 2025/26 Report. The sharp rise in exports has been primarily driven by a boom in palm oil and jute goods, alongside solid performances in processed foods, garments, and traditional products like cardamom and herbs.

Exports Cross Rs. 47.3 Billion

NRB data reveals that Nepal’s total exports reached Rs. 47.3 billion in the first two months of FY 2025/26, compared to Rs. 25.1 billion during the same period last fiscal year. The top 20 export commodities alone accounted for 75.4% of total exports, totaling Rs. 35.68 billion, while other goods made up 24.6% (Rs. 11.63 billion).

Palm Oil and Jute Drive the Export Boom

• Palm Oil saw the most dramatic increase — a 318.4% surge, reaching Rs. 1.36 billion compared to Rs. 325.7 million in the same period of FY 2024/25. The commodity now accounts for 2.9% of total exports, reflecting Nepal’s growing re-export trade of refined edible oils to regional markets.

• Jute Goods climbed 61.1%, reaching Rs. 1.61 billion, maintaining their status as one of Nepal’s most consistent export performers.

• Soybean Oil, Nepal’s top export product, continued to dominate with Rs. 20.42 billion, representing 43.2% of total exports, despite showing no significant growth from last year’s extraordinary surge.

Other Rising Export Sectors

Several other commodities showed encouraging trends:

• Noodles (+45.7%), Herbs (+44.0%), and Cardamom (+43.9%) saw strong growth, reflecting the diversification of Nepal’s export base into processed and high-value agricultural goods.

• Shoes and Sandals (+35.2%) and Ayurvedic Medicine (+30.5%) also performed well, highlighting Nepal’s expanding light manufacturing and herbal industries.

• However, some traditional exports such as Tea (-37.2%), Woolen Carpets (-20.7%), and Zinc Sheets (-77.6%)experienced declines, indicating challenges in price competitiveness and demand from key trading partners.

Macroeconomic Context

The export boom comes amid improving macroeconomic fundamentals. Nepal’s foreign exchange reserves have hit a record Rs. 2.88 trillion (USD 20.41 billion), sufficient for over 13 months of imports, while the Balance of Payments (BOP) recorded a surplus of Rs. 153.7 billion. Inflation dropped to 1.87%, and the base interest rate fell to 5.72%, creating a stable environment for trade and industry.

Energy and Non-Traditional Exports Rising

Beyond the top 20 commodities, electricity exports rose to Rs. 8.64 billion, while aviation fuel exports stood at Rs. 2.14 billion, reflecting Nepal’s growing integration into regional energy and transport networks. These categories, although excluded from customs totals, signal the diversification of the country’s export portfolio beyond traditional goods.

Economists note that the surge in exports, particularly of palm and soybean oil, underscores Nepal’s re-export advantage through regional trade routes, especially to India and third-country markets. However, they caution that long-term sustainability will depend on industrial value addition, product diversification, and export-oriented infrastructure investment.