Nepal's foreign trade volume grows as imports surge during festive season

Nepal's foreign trade landscape saw significant movement in the first quarter of the current fiscal year 2083/84 (mid-July to mid-October 2026), characterized by a sharp rise in both imports and exports. According to data released by the Department of Customs on Wednesday, October 28, 2026, the total volume of foreign trade reached Rs 761.07 billion, marking a 40.71 percent increase compared to the same period last year.

Import surge driven by festivals

Imports climbed to Rs 646.78 billion during the three-month period, a 38.18 percent jump from the previous year's Rs 468.08 billion. Bizmandu attributed the Ashoj jump to the Dashain festival, while Onlinekhabar put it down to festive demand more generally. Imports in Ashoj alone were Rs 245.27 billion according to Bizmandu, Rs 245.26 billion according to Onlinekhabar and Rs 246 billion according to Setopati, a difference of rounding in the same Customs release. Setopati noted that rising international commodity prices and increased domestic consumption of petroleum products have further inflated the import bill.

Key import items included crude soybean oil, which topped the list at over Rs 50 billion, followed by significant expenditures on diesel, petrol, and liquefied petroleum (LP) gas. Additionally, Onlinekhabar reported that Nepal imported 56,893 tonnes of rice, paddy, and related products, costing Rs 4.48 billion, with imports accelerating notably in the final month of the quarter.

Export growth and trade deficit

Despite the heavy reliance on imports, export performance showed resilience. The Department of Customs reported that exports reached Rs 114.28 billion, a 57.03 percent increase over the Rs 72.78 billion recorded in the same quarter of the previous fiscal year. Vegetable oils remained the primary export commodity, at Rs 59.32 billion according to Onlinekhabar.

Setopati noted that exports grew faster than imports in percentage terms, 57.03 percent against 38.18 percent, but from a much smaller base, so the trade deficit still widened. It rose by 34.71 percent to Rs 532.49 billion, from Rs 395.30 billion a year earlier. While the export-to-import ratio improved slightly—moving from 1:6.43 last year to 1:5.66 this year—the gap remains substantial.

Trade partners

India remains Nepal's largest trading partner, accounting for the bulk of both imports and exports. The trade deficit with India alone stood at Rs 271 billion for the quarter. China followed as the second-largest partner, though the trade balance remains heavily skewed in favor of imports from the northern neighbor. Onlinekhabar lists Argentina as the third-largest partner, with Rs 35.65 billion of imports, mainly raw material for edible oil. Saudi Arabia accounted for Rs 11.56 billion of imports and Brazil for Rs 9.04 billion. Bizmandu says the crude soybean oil came from Argentina, China and Brazil.