Neal’s trade pulse has surged this quarter, driven by a huge jump in processed soybean oil exports. According to Nepal’s Department of Commerce, the country sent goods worth NPR 59.12 billion to India from mid‑July to the end of September 2025–26, up 137.9 % from the same period last year.
India remains Nepal’s biggest trading partner. Nearly half of the shipments—NPR 30.69 billion—were processed soybean oil, accounting for about 52 % of total exports to the Indian market. The next two largest items were processed sunflower seed oil (NPR 2.13 billion) and palm oil (NPR 1.73 billion). These export numbers were tiny in the previous fiscal year, showing a sharp rise.
Why the boom? Nepal enjoys duty‑free access to India under the South Asian Free Trade Area (SAFTA) agreement, while India still levies tariffs on edible oils from other countries. Nepal’s raw oil is imported, refined locally, and re‑exported, benefiting from lower Indian duties. Even after India cut its basic customs duty on crude edible oil from 20 % to 10 % in May, the duty on refined oil stayed high at 32.5 % (35.75 % after excise and surcharges).
Trade expert Rabi Shankar Sainju cautions that this edge isn’t guaranteed. “If India lowers duties on foreign oils, half of Nepal’s current exports to India could vanish,” he said. He also highlighted that Nepal’s heavy dependence on India remains a threat; 81.23 % of the country’s total exports in the first quarter came from Indian customers. In contrast, exports to China lag far behind, totaling only NPR 186.42 million—a drop in the bucket—due largely to weak cross‑border infrastructure.
For Nepal, the recorded 138 % jump in exports underlines a period of rapid growth but also signals the need for diversified trade partners and stronger logistics links, especially to China. Keep watching as the country adjusts its strategies to lock in this momentum while managing its reliance on the Indian market.
Source: ianslive
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