Imports rise 31.6% to NRs 401.5 billion in first two months of 2026/27

Nepal’s merchandise imports rose 31.58% year-on-year to NRs 401.52 billion in the first two months of the ongoing fiscal year 2026/27, with soybean oil, diesel and petrol among the largest imported commodities, according to the Department of Customs.

Imports in Shrawan (mid-Jul to mid-Aug), the first month of the fiscal year, stood at NRs 187.44 billion before increasing to NRs 214.08 billion in Bhadra (mid-Aug to mid-Sep). The Bhadra figure was about 14% higher than in Shrawan, as traders increased supplies ahead of the major Dashain and Tihar festivals.

Nepal had imported goods worth NRs 305.16 billion during the first two months of the previous fiscal year.

Soybean oil was the largest import item during the two-month period, with imports valued at NRs 38.05 billion. Diesel ranked second at NRs 28.03 billion, followed by petrol at NRs 16.13 billion. Liquefied petroleum gas and chemical fertiliser were among the other major imports.

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The increase in the import bill reflects several factors, including higher international prices for some commodities, increase in dollar exchange, seasonal demand ahead of the festival period, increased petroleum consumption and additional demand for essential goods following disruptions caused by floods in Rasuwa.

Crude soybean oil, diesel and fertiliser together accounted for approximately NRs 40.10 billion of the NRs 96.36 billion year-on-year increase in the total import bill.

Imports from China increase

Imports recorded from China also rose sharply in Bhadra despite disruptions at the Rasuwagadhi and Tatopani border crossings.

Nepal imported goods worth approximately NRs 44.65 billion from China in the second month of the fiscal year, compared with NRs 31.75 billion in the previous month, an increase of about 41%. The figure was also around 20% higher than the NRs 37.19 billion recorded in the same month last year.

The increase in China-linked imports does not, however, establish which routes were used to bring the goods into Nepal. Goods recorded as imports from China can also enter Nepal through third-country seaports before being transported overland.

Customs data for the first two months show imports through Mustang worth NRs 8.33 billion, compared with just NRs 120 million in the same period last year. Imports through Tatopani fell to NRs 870 million from NRs 5.34 billion, while Rasuwa recorded imports worth NRs 7.92 billion during the period.

Exports grow nearly twice as fast as imports

Nepal’s exports recorded stronger growth than imports during the first two months of FY 2026/27.

Exports rose 61.86% to NRs 76.59 billion, from NRs 47.32 billion during the same period last year. The re-export of edible oil soybean was the largest export, valued at NRs 36.04 billion. 

Although exports grew at nearly twice the rate of imports, the much larger size of the import bill meant that Nepal’s trade deficit continued to widen.

The trade deficit increased 26.02% to NRs 324.93 billion during the first two months, from around NRs 257.84 billion a year earlier.

Total foreign trade reaches nearly half a trillion

The total merchandise trade reached NRs 478.10 billion during the first two months of FY 2026/27, up from NRs 352.47 billion during the corresponding period last year.

Imports accounted for 83.98% of total foreign trade, while exports accounted for 16.02%. The export share increased from 13.42% during the first two months of the previous fiscal year.

The stronger growth in exports also improved Nepal’s import-to-export ratio. During the first two months of the current fiscal year, Nepal imported NRs 5.24 worth of goods for every NRs 1 worth of exports, compared with NRs 6.45 worth of imports for every NRs 1 of exports a year earlier.

Despite the improvement in the export share, the figures show that Nepal’s external trade remains heavily dependent on imports, with the country recording more than NRs 4 in imports for every NRs 1 in exports during the first two months of FY 2026/27.