The NEPSE Journal
Market commentary, data deep-dives, and trading notes from the NEPSE Trading desk.
Nepal’s exports to India grew 156.7% in 2025/26, driven by soybean oil, cardamom, noodles, and jute goods. However, traditional exports like tea, particle boards, and zinc sheets declined sharply. The surge shows India’s dominance in Nepal’s trade but also the need for diversification.
In FY 2025/26, Nepal’s exports grew 95.7%, with the top 20 commodities making up 75% of total exports. Growth was led by soybean oil, palm oil, and cardamom, while traditional items like carpets and tea declined. Export concentration remains a key risk.
In FY 2025/26, Nepal’s textile exports grew 6% to Rs. 203.4 million, while readymade garments fell 1.1% to Rs. 519.3 million. The textile base is expanding, but garment exports remain under pressure from global competition.
Zinc sheet exports plunged 69.4% in FY 2025/26, falling to Rs. 226.3 million in one month. Rising costs and global competition hurt the sector, reducing its share to under 1% of Nepal’s exports.
Noodles exports grew 59.7% in FY 2025/26, reaching Rs. 242.3 million in one month. Demand from India, the Middle East, and diaspora markets is driving the rise, showing Nepal’s processed food sector is gaining global momentum.
Cardamom exports surged 99.5% in FY 2025/26, reaching Rs. 321.7 million in one month. Strong demand in India and global spice markets boosted Nepal’s foreign earnings, making cardamom a bright spot in agricultural trade.
Jute goods exports grew 31.3% in FY 2025/26, reaching Rs. 582.5 million in one month and contributing 2.4% to total exports. Strong global demand for eco-friendly products is driving this revival, but modernization is needed to sustain momentum.
Palm oil exports surged 675% in FY 2025/26, reaching Rs. 714.6 million in one month and contributing 3% of total exports. Driven by re-exports to India, palm oil has become a key growth engine but remains vulnerable to trade policy changes.
Nepal’s woolen carpet exports fell by 26.6% in FY 2025/26, reflecting weakening global demand and competitiveness. Once a flagship handicraft, carpets are being overtaken by industrial products like polyester yarn.
Polyester yarn and thread exports rose 22.5% in FY 2025/26, reaching Rs. 1.08 billion in one month and contributing 4.5% of total exports. Strong demand shows Nepal’s textile industry is shifting toward synthetic fibers, though diversification remains a challenge.