Exports of Five Major Goods Decline Despite Overall Growth

Despite a 58.17 percent increase in Nepal’s overall exports in the first five months of the current fiscal year (FY 2025/26), exports of five major goods declined during the review period, according to the Trade and Export Promotion Centre (TEPC).

The exports of iron and iron products, yarn, ready-made garments, plywood, and carpets fell significantly compared to the same period of the previous fiscal year (FY 2024/25), TEPC said.

Although rising exports of edible oils such as soybean and sunflower oil boosted overall export figures, the centre noted a notable contraction in the export performance of the five major products.

Iron and iron products recorded the steepest decline during the review period. Exports of iron-based products fell by 74.80 percent year-on-year, with shipments worth Rs 1.48 billion recorded in the five-month period, according to TEPC.

Plywood ranked second among products witnessing a drop in exports. Nepal exports plywood solely to India. During the review period, plywood exports declined by 51.91 percent, limiting total exports to Rs 1.63 billion.

Carpet exports also fell, with Nepal exporting carpets worth Rs 4.13 billion in the first five months of the current fiscal year, down 16.70 percent from the same period last year.

Similarly, yarn exports declined by 8.63 percent, with shipments totaling Rs 5.22 billion during the review period. Exports of ready-made garments dropped by 3.34 percent to Rs 4.01 billion.

Nepal Plywood Producers’ Association President Hom Prasad Ghimire attributed the decline in plywood exports to delays in obtaining certification from India’s Bureau of Indian Standards (BIS) since the beginning of the fiscal year.

“Exports slowed as BIS certification was delayed,” Ghimire said, adding that plywood exports are expected to recover as certification has recently begun. He said 17 industries have already received BIS certification, while 15 others are in the process, which is likely to boost exports in the coming months.

Meanwhile, Radha Kumari Pant, vice-president of the Nepal Carpet Manufacturers and Exporters Association, said labour shortages had affected production capacity. She also noted that declining orders from foreign buyers contributed to the drop in carpet exports.