Nepal's Exports to India: Soybean Oil Leads, Cardamom Exports Decline
Author
Dipesh Ghimire
In the first six months of the current fiscal year 2081/82 (2024/25), Nepal exported goods worth NPR 73.71 billion to India. According to the latest report from Nepal Rastra Bank, the primary export items during this period were soybean oil, polyester yarn, cardamom, zinc sheets, and particle boards.
Soybean Oil Tops Exports, Cardamom Faces Decline
Among Nepal’s exports to India, soybean oil has secured the top position. In the first half of this fiscal year, Nepal exported NPR 18.91 billion worth of soybean oil to India, marking a significant increase compared to the same period last year.
However, the export of cardamom, a product Nepal has long supplied to India, has seen a decline. In the first six months, Nepal exported only NPR 4.55 billion worth of cardamom, indicating challenges in the trade.
Top 10 Exported Products (Six-Month Data)
Soybean Oil – NPR 18.91 billion
Polyester Yarn – NPR 5.92 billion
Cardamom – NPR 4.55 billion
Zinc Sheets – NPR 4.51 billion
Particle Board – NPR 4.24 billion
Juice – NPR 3.45 billion
Jute Goods – NPR 3.34 billion
Tea – NPR 2.82 billion
Oil Cakes – NPR 1.78 billion
Textiles – NPR 1.54 billion
Growth in Some Exports, Decline in Others
Nepal has seen improvements in the export of tea, herbs, ready-made garments, plastic utensils, and cotton threadto India. However, the exports of mustard & linseed and cattle feed have dropped to zero, highlighting challenges in these industries.
Trade Deficit Remains a Concern
Despite total exports reaching NPR 73.71 billion, Nepal's trade deficit with India remains significant. Experts suggest that to boost exports, the government needs to improve trade policies and provide more incentives to industrial sectors.
Analysts recommend greater collaboration between the government and private sector to enhance technology adoption, financial support, and market access for Nepal’s export-oriented industries. Additionally, revisiting trade agreements with India could help create a more favorable export environment.
Looking at the current export trends, demand for tea, herbs, oil, and polyester yarn is expected to rise in the coming months. If the government implements policy reforms and promotes domestic production, Nepal can achieve better results in its export trade, according to experts.
