Nepal's Top 10 Commodity Exports: Trends and Insights for 2024/25

In the first five months of the fiscal year 2024/25, Nepal's export sector has experienced a mixture of robust growth in some commodities and significant decline in others, according to the latest trade data. The total export figures for major commodities reveal both opportunities and challenges for the country’s economy. Below is a detailed analysis of the trends:

Soyabean Oil Leads the Pack

Soyabean oil continues to dominate Nepal's export portfolio, with a staggering export value of Rs. 8,368.12 million, accounting for 11.4% of total exports. Remarkably, this commodity registered an exponential growth rate of 2,204.3%, indicating an unprecedented surge in demand or expansion in export markets. The data suggests that soyabean oil is emerging as a cornerstone of Nepal's export economy.

Steady Growth in Industrial Products

Industrial products such as polyester yarn & thread and particle board have shown notable growth. Polyester yarn & thread recorded exports worth Rs. 5,505.35 million, representing 7.5% of the total exports, with a growth rate of 17.9%. Similarly, particle board exports reached Rs. 3,408.60 million, also growing by 17.9%. These figures suggest a consistent demand for Nepalese industrial products in international markets.

Traditional Commodities Like Woolen Carpets and Cardamom Shine

Woolen carpets, a traditional hallmark of Nepalese exports, generated Rs. 4,960.69 million in revenue, contributing 6.7% to the export total. This marks a 9.5% growth compared to the same period last year. Cardamom also performed well, with exports valued at Rs. 3,456.35 million and a growth rate of 11.5%, solidifying its place as one of Nepal's key agricultural exports.

Tea: A Promising Sector

Tea exports recorded an impressive growth rate of 54.5%, earning Rs. 2,877.04 million and contributing 3.9% to the total export share. This surge highlights the growing international demand for Nepalese tea and reflects the sector’s potential for expansion in global markets.

Decline in Key Commodities

While some commodities have shown significant growth, others have faced a sharp decline. Exports of zinc sheets fell by 24.6%, generating Rs. 3,752.58 million, which still represents 5.1% of total exports. Readymade garments also witnessed a notable drop of 16.4%, with export revenue totaling Rs. 2,446.12 million. Similarly, juice exports declined by 7.6%, earning Rs. 3,140.82 million, and jute goods fell by 5.0%, with revenue of Rs. 2,821.08 million.

Export Composition and Challenges

The data shows a concentration of exports in a few key commodities, with soyabean oil, polyester yarn & thread, and woolen carpets accounting for significant shares. However, the steep declines in certain sectors like zinc sheets and garments underscore the volatility of Nepal's export markets. Factors such as global competition, fluctuating demand, and logistical challenges may have contributed to these downturns.

Way Forward

To sustain and accelerate growth in exports, Nepal needs to diversify its export portfolio, improve the competitiveness of its products, and address supply chain issues. Additionally, sectors such as tea and soyabean oil offer immense potential for growth, which could be leveraged through strategic investments and policy support.

In conclusion, Nepal’s export data for the first five months of 2024/25 paints a mixed picture. While certain commodities are performing exceptionally well, others require immediate attention to reverse declining trends. With focused strategies, the country can aim for a more balanced and resilient export performance in the future.