Nepal’s export of high-value goods continues to struggle, with growth stalling at a meagre 1.22 percent in the first half of the current fiscal year, sharply contrasting with overall export growth of 43.76 percent during the period.

Government data show that the surge in exports has largely been fuelled by edible oil—goods Nepal does not produce domestically. According to the Department of Customs, Nepal exported goods worth Rs142.01 billion in the first six months of the current fiscal year until mid-January.

However, exports of products listed under the Nepal Trade Integrated Strategy (NTIS) 2023 reached only Rs49.64 billion during the review period, marginally up from Rs49.04 billion in the same period of the previous fiscal year.

During the period, exports of edible oil—soybean, sunflower and palm oil—jumped sharply by 155.69 percent to Rs64 billion. Nepali traders import crude edible oil and re-export it to India after processing, taking advantage of tariff concessions under the South Asian Free Trade Area (SAFTA) regime. Nepal exported 311,841 tonnes of edible oil to India during the review period.

The government implemented the revised NTIS 2023, replacing NTIS 2016, to boost exports and support Nepal’s graduation from the least developed country category by 2026. However, more than two years into its implementation, the export performance of identified potential commodities has continued to weaken.

Nepal imported 459,238 tonnes of crude soybean, sunflower and palm oil worth Rs71.22 billion in the first six months of the current fiscal year.

“The import and export data of edible oil show that Nepal has not added value and is merely re-exporting,” said Rabi Shankar Sainju, a trade expert. “If Nepal had added value, imports would have been lower than exports, but here imports are higher.”

Sainju, who was also one of the consultants involved in preparing NTIS 2023, said none of the works outlined in the strategy to boost exports have been effectively implemented by the ministries, departments or stakeholders concerned.

He said Nepal has not been able to export large cardamom directly to third countries due to the lack of processing units, reflecting the weak efforts to strengthen trade. With the current global trade war and rising tariffs creating new challenges, Nepal has also failed to realign its trade strategy to respond to changing global conditions, he added.

During the review period, exports of yarns, carpets, readymade garments, tea, iron and steel products and Nepali paper declined.

Shipment of yarns declined by 6.23 percent to Rs6.45 billion in the first six months of the current fiscal year compared to the same period last year. Yarn exports accounted for 4.5 percent of total exports. Nepal exported yarns worth Rs14.36 billion in the last fiscal year.

Carpet shipments fell 13.17 percent to Rs4.87 billion during the review period, contributing 3.4 percent to total exports, with 191,075 square metres exported. In the last fiscal year, Nepal exported 472,023 square metres of carpet worth Rs10.77 billion.

Shipments of readymade garments declined by 2.07 percent to Rs4.59 billion, with 8 million pieces exported during the period. Nepal exported 15.88 million pieces of readymade garments worth Rs8.75 billion in the last fiscal year.

Tea exports fell sharply by 24.10 percent to Rs2.40 billion, with shipments of 8,001 tonnes. In the last fiscal year, Nepal exported 15,598 tonnes of tea worth Rs4.59 billion.

Iron and steel product exports plunged 75.93 percent to Rs1.73 billion. Nepal had exported iron and steel products worth Rs16.35 billion in the previous fiscal year.

Exports of Nepali paper declined 1.89 percent to Rs627.24 million during the review period.

In contrast, shipments of several other products increased, including jute and jute products, felt, large cardamom, pashmina, footwear, cement, fabrics, dog and cat food, medicinal herbs, rosin and resin acid, lentils, ginger, gold and silver jewellery, vegetables, fruits, spices, coffee, pasta and honey.

Exports of jute and jute products surged by 60.69 percent to Rs5.57 billion in the first six months of the current fiscal year. Nepal exported jute and jute products worth Rs8.22 billion in the last fiscal year.

Shipment of felt products increased by 12.94 percent to Rs2.98 billion, compared to exports worth Rs5.14 billion in the previous fiscal year.

Large cardamom exports grew 57.66 percent to Rs7.19 billion, with 3,461 tonnes exported to India. Nepal exported 4,301 tonnes of large cardamom worth Rs7.68 billion in the last fiscal year.

Pashmina shipments increased 24.54 percent to Rs2.13 billion, compared to Rs3.22 billion in the previous fiscal year.

Footwear exports surged by 85.54 percent to Rs1.53 billion, up from Rs2 billion in the last fiscal year.

Cement exports increased 17.23 percent to Rs1 billion, compared to Rs2.21 billion in the previous fiscal year.

Fabric shipments grew 8.23 percent to Rs1.66 billion, compared to exports worth Rs3.08 billion last fiscal year.

Exports of dog chew rose 3.86 percent to Rs1.87 billion, compared to Rs4.51 billion in the previous fiscal year.

Medicinal herb exports increased 48.67 percent to Rs903.38 million, while lentil exports rose 44.70 percent to Rs237.72 million, with 1,479 tonnes shipped.

Ginger exports more than doubled, rising 114.4 percent to Rs650.78 million, with 8,975 tonnes exported during the period.

Exports of silver jewellery increased by 43.59 percent to Rs114.28 million.

Vegetable shipments grew 29.23 percent to Rs172.61 million, while spice exports rose by 4.89 percent to Rs176.59 million.

Pasta exports jumped 68.31 percent to Rs1.69 billion, with shipments of 6,752 tonnes during the review period.