Nepal’s import and export of key agricultural products decreased in the fiscal year (FY) 2023/24, according to the latest data released by the government.

Releasing the data on Sunday, the Ministry of Agriculture and Livestock Development said imports of major agricultural produce in FY 2023/24 decreased by 20 percent, while exports dropped by 32 percent compared to FY 2022/23. The figures show that imports were higher than exports.

According to the ministry’s statistics, the country imported agricultural produce worth Rs 255.64 billion in FY 2022/23. The imports decreased to Rs 204.12 billion in FY 2023/24. Similarly, in FY 2022/23, the country exported agricultural produce worth Rs 59.54 billion which dropped to Rs 40.59 billion in FY 2023/24.

Mahananda Joshi, senior agricultural economist at the ministry, noted that in the past, business enterprises imported unprocessed palm, soybean, and sunflower oil from Brazil, Argentina, Indonesia, and other countries, processed them, and then exported them to India.

To control food prices, India removed customs duties on the import of crude palm, soybean, and sunflower oil in March 2023. Joshi stated that this impacted the import and export of agricultural products.

In FY 2022/23, Nepal exported 97,990 metric tons of palm oil worth Rs 20.50 billion. However, in FY 2023/24, the country exported only 44,967 metric tons of palm oil worth Rs 6.33 billion, according to the ministry’s statistics. The data also indicate that palm oil was not imported in FY 2023/24.

The data show that paddy/rice was the most imported agricultural product. In FY 2022/23, Nepal imported 789,848 metric tons of paddy/rice worth Rs 35.9 billion, but in FY 2023/24, it imported only 477,350 metric tons of paddy/rise worth Rs 21.34 billion.

Maize was the second most imported commodity after paddy/rice, and its imports also declined. In the previous year, 435,270 metric tons of maize worth Rs 16.5 billion were imported, whereas in FY 2023/24, only 350,100 metric tons of maize worth Rs 14.653 billion were imported.

In contrast, imports of fruits and wheat increased during this period. In the previous fiscal year, the country imported fruits worth Rs 16.1 billion, while in FY 2023/24, the import value rose to Rs 19.54 billion. Wheat imports also increased from Rs 289 million to Rs 2.73 billion.

According to Joshi, the increase in fruit imports is due to recent changes in the eating habits of Nepali citizens. He mentioned that people from affluent families have started including fruit in their dinners, leading to a rise in fruit imports.

A study by the Nepal Living Standards Survey indicates that the food consumption trend among Nepalis is gradually shifting from grains to fruits and fish.

During the fiscal last year, the import of garlic, onion, and potato had decreased due to VAT imposed on these items by the government.

During this period, potato imports fell to Rs 6.45 billion from Rs 7.81 billion in the previous year. Similarly, garlic and onion imports decreased from Rs 7.98 billion in FY 2022/23 to Rs 4.46 billion in FY 2023/24. 

In terms of exports, Nepal exported 9,919 metric tons of cardamom worth Rs 8.27 billion 68 million in FY 2022/23, but in FY 2023/24, only 5,018 metric tons of cardamom worth Rs 7.94 billion were exported. Ginger exports also declined from Rs 1.22 billion to Rs 1.17 billion.