Nepal’s Import Trends Show Sharp Rise in Key Commodities Despite Slight Drop in Petroleum Imports

The recent foreign trade statistics released for the first nine months of the fiscal year 2024/25 reveal notable shifts in Nepal's import patterns, with dramatic increases in several essential commodities, despite a marginal decline in petroleum product imports.

According to the data presented in Table 18: Imports of Major Commodities, total petroleum product imports declined from Rs. 218.78 billion in 2023/24 to Rs. 210.15 billion in 2024/25, showing a drop of over Rs. 8.6 billion. However, this minor dip in petroleum was offset by significant spikes in other critical imports, reflecting changing domestic demand and supply chain dynamics.

One of the most astonishing changes was seen in crude soybean oil, which jumped from Rs. 10.86 billion last fiscal year to Rs. 65.10 billion this year — an almost six-fold surge. This sharp increase indicates a booming demand, likely tied to both industrial processing and consumption.

Likewise, vehicle and transport equipment imports rose from Rs. 54.70 billion to Rs. 66.13 billion, a clear signal of increased infrastructure development and consumer purchasing in the automobile sector. Other machinery and partsalso saw an upward trend, increasing from Rs. 55.43 billion to Rs. 58.76 billion.

Significant rises were observed in imports of medicines (from Rs. 33.13 billion to Rs. 34.80 billion), telecommunication equipment (Rs. 28.30 billion to Rs. 31.31 billion), and readymade garments (Rs. 25.89 billion to Rs. 30.85 billion), suggesting both higher consumption levels and the expansion of the healthcare and technology sectors.

Among agro-industrial inputs, rice and paddy imports surged from Rs. 17.51 billion to Rs. 31.79 billion, implying possible shortfalls in domestic production or a shift in local food demand. Similarly, edible oil imports climbed from Rs. 12.91 billion to Rs. 23.13 billion.

Meanwhile, imports of chemical fertilizers fell from Rs. 23.59 billion to Rs. 20.26 billion, hinting at reduced government procurement or improved local production. Electrical equipment imports also declined from Rs. 26.57 billion to Rs. 24.77 billion.

Other commodities that saw notable increases include:

• Hot rolled sheet in coil: Rs. 15.48B → Rs. 22.15B

• Gold: Rs. 17.74B → Rs. 19.46B

• Electrical goods: Rs. 13.89B → Rs. 18.53B

• Thread: Rs. 14.96B → Rs. 17.42B

• M.S. Wire Rod, Bars, Coils: Rs. 8.01B → Rs. 11.99B

The consistent upward movement across most industrial and consumer-oriented imports indicates increasing domestic consumption, industrial expansion, and possibly higher inflationary pressures.

In conclusion, while Nepal saw a slight decrease in petroleum imports, the overall import bill for major commodities is expected to rise, driven by growing demands in food, fuel alternatives, industrial inputs, and infrastructure. This trend highlights both the opportunities and challenges for the government in managing trade deficits, local production capacities, and foreign exchange reserves.