Nepal’s exports rose by 72.71 percent in the first 10 months of the current fiscal year 2024/25 compared to the same period last year, according to the latest data from the Department of Customs.

From mid-July to mid-May, Nepal exported goods worth Rs 217.91 billion, a significant increase from Rs 126.17 billion during the same period last fiscal year. Imports also saw a modest increase by 13.11 percent to Rs 1,474.18 billion, compared to Rs 1,333.3 billion in the corresponding period last year.

The surge in exports has been driven primarily by refined edible oils. Soybean oil remained the top export, with shipments exceeding Rs 78.75 billion. Sunflower oil followed, with exports worth Rs 10.09 billion during the review period.

The number of export items generating more than Rs 1 billion each has now crossed three dozen, indicating a broader base in export diversification.

Despite the rise in exports, the trade deficit remains substantial. Nepal's foreign trade deficit reached over Rs 1.26 trillion in the review period, up by 6.72 percent compared to the same period last year. Total foreign trade during the 10 months crossed Rs 1.69 trillion.

Commenting on the export trends, Paras Kharel, Executive Director of South Asia Watch on Trade, Economics and Environment (SAWTEE), noted that Nepal benefits from the South Asian Free Trade Area (SAFTA) facility, which allows it to export edible oils to India at zero customs duty. “When India imposes higher tariffs on crude and refined palm and soybean oils from other countries, Nepal’s exports rise as buyers shift to duty-free sources,” he said.