Kathmandu, October 28
Nepal’s exports crossed Rs 100 billion in the first quarter of the current fiscal year 2026/27, rising 57.03 per cent year-on-year, according to the Department of Customs.
The country exported goods worth Rs 114.28 billion in the first three months, from mid-July to mid-October, compared with Rs 72.78 billion during the same period of the previous fiscal year.
Nepal recorded merchandise exports worth more than Rs 315 billion in the last fiscal year, setting a new annual record. The strong growth in the first quarter indicates that exports could surpass that level this year if the trend continues.
Imports also rose sharply, driven in part by increased demand during the festive season. Nepal imported goods worth Rs 245.26 billion in October alone, taking total imports for the first quarter to Rs 646.78 billion, up 38.18 percent from Rs 468 billion in the corresponding period last fiscal year.
The combined growth in imports and exports pushed the country’s total foreign trade to Rs 761.07 billion, a 40.71 percent increase from Rs 540 billion a year earlier.
Despite the rise in exports, Nepal’s trade deficit widened by 34.71 percent to Rs 532.49 billion in the first quarter, compared with Rs 395 billion in the same period last fiscal year.
Exports accounted for 15.02 percent of total foreign trade, up from the previous year’s share, while imports made up 84.98 percent.
Fuel and raw materials dominate imports
Fuel accounted for the largest share of imports, with Nepal purchasing petroleum products worth Rs 119 billion during the three-month period. Imports of raw materials for vegetable oils amounted to Rs 66.66 billion.
Vehicle imports and related raw materials cost Rs 53.19 billion, while machinery and mechanical parts accounted for Rs 42.11 billion. Electrical equipment imports stood at Rs 40.84 billion, iron and steel at Rs 39.37 billion, and fertilisers at Rs 32.75 billion.
Crude soybean oil was the single largest imported commodity, valued at Rs 52.60 billion. Diesel imports amounted to Rs 47.31 billion, followed by petrol worth Rs 24.62 billion and liquefied petroleum gas (LPG) worth Rs 23.18 billion.
Nepal also imported chemical fertilisers worth Rs 19.30 billion and smartphones worth Rs 18.81 billion. Gold imports during the period amounted to around Rs 3 billion.
Vegetable oils lead exports
Vegetable oils dominated Nepal’s export earnings in the first quarter. Exports of vegetable oil were valued at Rs 59.32 billion, making the category the largest contributor to merchandise exports.
Yarn exports amounted to Rs 4.97 billion, while tea, coffee and spices accounted for Rs 4.65 billion. Carpet-related exports stood at Rs 3.72 billion.
Among individual products, soybean oil exports were valued at Rs 52.60 billion. Carpet and other textile exports amounted to Rs 3.32 billion, while jute exports reached Rs 2.96 billion.
Nepal also exported cardamom worth Rs 2.57 billion, sunflower oil worth Rs 2.53 billion and palm oil worth Rs 2.42 billion.
The substantial trade in vegetable oils reflects Nepal’s role in importing crude vegetable oil and exporting processed products, particularly to India.
India remains Nepal’s largest trading partner
India was Nepal’s largest trading partner in the first quarter, accounting for the highest levels of imports, exports and bilateral trade deficit.
Nepal imported goods worth Rs 366 billion from India and exported goods worth Rs 95.59 billion to the neighbouring country, resulting in a trade deficit of around Rs 271 billion.
China ranked second among Nepal’s trading partners. Imports from China were valued at Rs 134 billion, while Nepal’s exports to the country amounted to just Rs 670 million.
Argentina ranked third, with Nepal importing goods worth Rs 35.65 billion, largely raw materials used in vegetable oil production. Saudi Arabia followed, with imports worth Rs 11.56 billion.
Imports from Brazil amounted to Rs 9.04 billion, while those from the United States stood at Rs 8.93 billion. Nepal exported goods worth Rs 6.99 billion to the US, leaving a comparatively smaller trade deficit with the country.
Nepal’s foreign trade in the first quarter
Total imports stood at Rs 646.78 billion, while exports reached Rs 114.28 billion. The trade deficit amounted to Rs 532.49 billion, taking total foreign trade to Rs 761.07 billion.
The import-to-export ratio stood at 5.66, meaning Nepal imported goods worth approximately Rs 5.66 for every rupee earned from exports. Imports accounted for 84.98 percent of total trade, compared with 15.02 percent for exports.
