Nepal’s agricultural imports are rising faster than its exports. In the first seven months of the 2024/25 fiscal year, imports of agricultural goods reached Rs. 205 billion. This is much higher than the Rs. 127 billion in exports. The gap between imports and exports is Rs. 78 billion, showing a big difference.
Nepal, an agricultural country, depends heavily on imports for food and raw materials. Despite its rich farmland, Nepal is importing more than it is exporting. In fact, imports of agricultural goods grew by 36.6% in the first seven months of this year. Last year, imports in the same period were worth Rs. 150 billion.
Cereals Lead the Imports
The import of cereals is one of the main drivers of this increase. Nepal imported cereals worth Rs. 36.35 billion during the first seven months of this fiscal year. This is a rise of 32% from last year’s Rs. 28.20 billion. Rice and paddy alone made up Rs. 25.37 billion of that total. This is a huge jump from Rs. 13.10 billion last year.
Wheat and maize are also part of the imports. Nepal imported wheat worth Rs. 268 million and maize worth Rs. 10.07 billion in the first seven months. Smaller imports included millet, buckwheat, and barley.
Oils and Edible Oils Soar
The rise in the import business of edible oils is another concern. Nepal imported crude soybean oil worth Rs. 38.34 billion and sunflower oil worth Rs. 17.33 billion. This is a sharp increase compared to the previous year, where crude soybean oil worth Rs. 8.57 billion and sunflower oil worth Rs. 9.69 billion were imported. The soybean oil import went up by 450%, and sunflower oil grew by 79%.
The import of crude palm oil also increased. Nepal imported Rs. 7.23 billion of palm oil in the same period.
Vegetables and Lentils
Vegetables and lentils make up a large part of Nepal’s agricultural imports. The total value of vegetables imported in the first seven months of 2024/25 was Rs. 25.87 billion. Potatoes alone were worth Rs. 5.49 billion. The country also imported tomatoes worth Rs. 418 million and onions worth Rs. 2.14 billion. Other vegetables, including garlic, dried chickpeas, and dried beans, added to the total. Lentils, particularly red lentils, were also imported. Nepal spent Rs. 3.97 billion on red lentils during this period.
Fruit Imports
The import of fruits has also increased. Nepal imported Rs. 9.5 billion worth of fruits in the first seven months of 2024/25. Apples were the top fruit, with 46.7 million kilograms entering the country. The total value of apple imports was Rs. 5 billion. Other fruits imported included oranges, guavas, mangoes, and grapes. Nepal spent Rs. 592 million on oranges, Rs. 491 million on guavas and mangoes, and Rs. 278 million on lemons.
Export Performance
While imports have surged, Nepal’s export performance has also improved. Exports of agricultural goods grew by 46% in the first seven months of this fiscal year. However, the total value of exports, Rs. 127 billion, still lags behind imports. Last year, Nepal exported Rs. 86.83 billion worth of agricultural products.
This increase in exports is a positive sign but does little to close the growing gap between imports and exports. The country still needs to work on improving its agricultural export sector to make up for the heavy reliance on foreign goods.
Trade Imbalance
The widening trade gap is a concern. Nepal’s growing dependence on imported agricultural products is putting pressure on the economy. Despite efforts to boost local agriculture, the country is still importing large quantities of food and raw materials. This shows that Nepal’s agricultural sector faces challenges in meeting domestic demand.
The government is taking steps to address these issues. Plans to increase agricultural production and reduce imports have been discussed. However, the rise in imports suggests that more work is needed to improve local agriculture and reduce the trade gap.
The rising cost of imports could also lead to higher prices for consumers. As Nepal continues to import cereals, edible oils, vegetables, and fruits, the pressure on the economy and consumers may increase.
For more updates on Nepal’s agricultural trade, visit Nepal Monitor.
