Exports and imports rise despite closure of northern border points

KATHMANDU, Oct 29: Nepal’s imports and exports both increased in the first three months of the current fiscal year despite the closure of the Rasuwagadhi and Korala customs points on the Chinese border due to floods and landslides.

According to the Department of Customs, Nepal imported goods worth Rs 646.78 billion between mid-July and mid-October, a 38.18 percent increase compared with the same period last fiscal year.

Floods in the Bhotekoshi and Trishuli rivers in Rasuwa on August 26, followed by flooding and landslides along the Kaligandaki and Budhigandaki rivers, disrupted road transport in the northern region. Traffic disruptions on major highways leading to Kathmandu also affected trade with China. Despite these setbacks, the country’s overall imports continued to rise.

Data released by the department on Wednesday show that Nepal imported goods worth Rs 187.44 billion in July, Rs 214.07 billion in August and Rs 245.27 billion in September. The department attributed the surge in September imports to increased market demand during Dashain.

During the first three months of fiscal year 2025/26, Nepal imported goods worth Rs 468.08 billion.

Exports also recorded substantial growth. Nepal exported goods worth Rs 114.28 billion in the first quarter of the current fiscal year, up 57.03 percent from Rs 72.78 billion in the same period last year.

With both imports and exports rising, Nepal’s total foreign trade expanded by 40.71 percent to Rs 761.07 billion. The increase in imports, which far exceeded export earnings, pushed the trade deficit beyond Rs 532.49 billion.

Crude soybean oil and fuel dominate imports

Crude soybean oil topped the list of imported commodities by value in the first quarter. Nepal imported more than Rs 50 billion worth of crude soybean oil from Argentina, China and Brazil.

Nepal imports crude vegetable oil, processes it domestically and exports the refined product, making the commodity a major component of both imports and exports.

The country also imported 288,000 kilolitres of diesel worth Rs 47.31 billion, 181,000 kilolitres of petrol worth Rs 24.62 billion and liquefied petroleum gas worth Rs 23.18 billion. Total fuel imports amounted to Rs 119 billion during the three month period, according to the department.

Imports of raw materials for vegetable oil production cost Rs 66.66 billion. Nepal spent another Rs 53.19 billion on vehicles and spare parts, Rs 42.11 billion on machinery and mechanical parts, Rs 40.84 billion on electrical equipment, Rs 39.37 billion on iron and steel, and Rs 32.75 billion on fertilisers.

Vegetable oil leads exports

Vegetable oil accounted for the largest share of Nepal’s export earnings during the review period. Yarn ranked second, with exports worth Rs 4.97 billion.

Exports of tea, coffee and spices totalled Rs 4.65 billion, while carpet related products generated Rs 3.72 billion. Nepal also exported Rs 2.96 billion worth of jute products, Rs 2.57 billion worth of large cardamom, Rs 2.53 billion worth of sunflower oil and Rs 2.42 billion worth of palm oil.

India accounts for largest trade deficit

India remained Nepal’s largest trading partner during the first quarter. Nepal imported goods worth Rs 366 billion from India while exporting goods worth Rs 95.59 billion, resulting in a trade deficit of Rs 271 billion.

China ranked second among Nepal’s trading partners, but exports to the country amounted to just Rs 670 million.

Argentina was Nepal’s third largest trading partner, supplying goods worth Rs 35.65 billion. Imports from Saudi Arabia stood at Rs 11.56 billion, followed by Brazil at Rs 9.04 billion and the United States at Rs 8.93 billion.

Nepal exported goods worth Rs 6.99 billion to the United States during the same period. The customs data show that Nepal’s trade deficit with the US was comparatively smaller than its deficit with major trading partners such as India.