Exports of palm oil and soybean oil plunged heavily in the first four months of the current fiscal year in Nepal

Published 2022년 12월 17일

Tridge summary

Nepal has seen a significant decrease in exports of palm and soybean oil in the initial months of the fiscal year, with exports of palm oil falling by 47.3% and soybean oil by 79.8%, according to the Nepal Rastra Bank. This decline is due to a drop in international demand for edible oil. Nepal had been benefiting from exporting these oils to India, taking advantage of the South Asian Free Trade Area (SAFTA) agreement, which offers zero tariffs on goods exported from underdeveloped countries. The finish products were then sold in Indian markets after being imported as crude oil and processed in Nepal. However, concerns have been raised about the potential impact on Nepali traders' business following an increase in duty on these edible oils imported from Nepal by India.

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Original content

KATHMANDU, Dec 17: Palm oil and soybean oil, which had been giving Nepal a notable amount of export earnings for the past few years, witnessed a sharp decline in exports in the first four months of the current fiscal year. According to the four months’ macroeconomic report of Nepal Rastra Bank (NRB), exports of palm oil plunged 47.3 percent and that of soybean oil declined 79.8 percent during mid-July to mid-November compared to the same period of last year. In the review period, exports of palm oil went down to Rs 10.02 billion from Rs 19.02 billion, while exports of soybean oil also fell to Rs 5.32 billion from Rs 26.40 billion. Sandeep Gadiya, president of Nepal Ghee and Oil Manufacturers’ Association, said the heavy decline in exports was due to a drop in demand for edible oil in the international market. Exports of palm oil started to jump from the fiscal year 2018/19 when the product secured earnings of Rs 10.33 billion for the country. Similarly, Nepali soybean oil expanded ...

Source: Nagariknetwork