Export of Palm Oil Declines by 50 Percent

October 11, 2023 | Investopaper

Palm oil exports from Nepal to neighboring India have experienced a significant decline of 50 percent, falling from 41.6 billion rupees in FY 2078/79 to 20.51 billion rupees in FY 2079/80. This drop was attributed to India’s decision to diversify its sources of palm oil imports, allowing imports from countries other than Nepal. Consequently, Nepal’s market share for palm oil in India has diminished. Nepal mainly imports palm oil from Indonesia and Malaysia, processing it locally before exporting to India.

Processed edible oil remained a major export item for Nepal, comprising 19.73 percent of the total export in FY 2079/80. This category included palm oil (13.1 percent), soybean oil (5.4 percent), and sunflower oil (0.3 percent). However, there was an overall increase of 20.1 percent in the export of commodities other than processed edible oil. Additionally, the export of soybean oil saw a significant decline of 82.4 percent, reducing its export value to 8.04 billion rupees.

Other notable exports from Nepal included woolen carpets, iron and iron products, ready-made garments, cardamom, juice, jute and jute goods, plywood, felt products, tea, and various other items. However, the overall foreign trade decreased by 5.3 percent in the initial two months of FY 2080/81 compared to the same period in FY 2079/80. Import of foreign goods and goods also decreased by 5.1 percent to 259 billion rupees, while Nepal’s exports decreased by 7.8 percent to 26.45 billion rupees during this period.


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