Nepal's Top Exports

Nepal's most of the export are raw materials or unfinished goods. There is an enormous possibility of earning more through value addition. 

In 2013, Nepal mostly exported handicrafts and agricultural products. History of Nepal’s trade dates back to as early as Vedic era, where it is portrayed as a place of exporting blankets in Atharvaveda Parisista. Until 1950s, Nepal traded the majority of its goods in India. During the second half of the last century, Nepal’s major exports were carpets, grain, leather goods and items of the Nepalese craftsmanship.  Besides India, the export extended to the EU, the US, Germany and other Asian countries. Notably, Nepal’s current exports are mainly of carpets, clothing, hemp, natural fiber, tea, leather goods, jute and grain, Chyangra Pashmina, coffee, and ginger.  

Nepali products are facing a cutting throat competition from the heavy influx of cheap goods from neighboring countries; however, some of them are surviving the battle. Among the winners-- yarn, hand knotted carpets and textiles are standing against the odds. In addition, some new comer—juice has witnessed a surprisingly soaring sales recently. Next, cardamom and tubes of iron are also in high demand abroad.

Source: Trade and Export Promotion Center, 2013

Based on the volume of sales those products have made overseas in 2013, here is their rightful position in the Top 10 export of Nepal rank. Following are the products that were among the top exports from Nepal in the year 2013.

1. Yarn, Polyester and Cotton Items:  

Yarns, a spun thread of cotton and polyester used for weaving and sewing are at the peak of Nepal's exportable goods. These knitting fibers, including a portion of handlooms stayed at the top position for the last three consecutive years, exported worth of 5.8 billion rupees in the fiscal year 2012/13. Although the amount slid by almost a tenth from 6.3 billion rupees a year ago, the fiber business is still in the high demand abroad. Therefore, it is at number one position.

2.  Hand Knotted Woolen Carpet:

Another masterpiece of Nepal's traditional craftsmanship, Woolen Carpet has remained stable in second position for the last three years. In 2012, the carpet export witnessed an an increase of a quarter, to 6 billion Nepali Rupees. Even so, this year, the demand slipped by 6% in the current financial year. Nevertheless, when considered the export volume, the woolen carpet holds the second rank.

3. Textiles:

Last year, the textile export got nearly doubled to Rs. 5.2 billion of export from the previous year. It saw a slight rise of 3% to Rs. 5.34 billion in 2012/13. The textiles, in the form of knitwear, scarf, mufflers, shawls and veils, on the basis of their export volume, grabbed the third position. 

4.  Cardamom:

One of the Nepal's flavoring spices, Cardamom was a big winner in 2011/12 with a soaring increase of 71% from the previous year to 3.4 billion rupees of export volume. Later, with a 9% growth, the business increased to 3.8 billion rupees in the current year 2012/13. The biggest winner from the previous year ranks the 4th position.

5.  Ready-made Garments:

A ready made woolen wear
Photo: Kishor Subba, Meyangbo Carpet

Ready-made garments, which was one of the biggest export items in the yesteryears. In 2010/11, the clothing business was on the third rank with total export of 4.84 billion Rupees. Nevertheless, the sales followed a continuing downturn-by a small amount, and the position also slipped to 4th in 2012. Despite the drop in sales, the demand of 3.8 billion of export in 2013 places the apparel business 5th in position.

6.  Juices:

Nepal's juice market is among few export items that has surged in recent years. In 2010/11 it was 15 in position exporting 1.35 billion of rupees. Surprisingly, last year the sales rocketed to more than two folds and climbed to 7th rank among top export items. Likewise, the growth continued, though by a small fraction of a fifth, to 3.8 billion of export. Climbing a step in the ladder, this year, the juice holds the 6th position.

7.  Tubes, pipes and hollow profiles of iron and steel:

Although Nepal imports iron and steel products, tubes and hollow objects of iron and steel are one among the Nepal's exports. Two years ago, in 2011/10, it was in 12th position exporting 1.64 billion rupees. Last year, the demand grew by almost the double from the previous year, to 2.35 billion rupees. The position only climbed by one rank to 11th in 2011/12. The upsurge continued, and increased by more than a third in 2012/13 as well with total export of 3.6 billion rupees. Owing to a substantial upturn in sales this year, it grabs the 7th position.

8.  Wire of iron or non-alloy steel:

Besides tubes, the wires of iron and non-alloy steel are another Nepali product in high demand. The iron and still wire export is constantly soaring, and climbed to 9th position last year from 10th a year before. Likewise, the demand overseas increased by more than a third and a tenth till last year. This year, with the total export amount of 2.73 billion rupees, the metal wire business ranked at 8th position.

9.  Lentils:

The major exportable agricultural product, Lentil was in 5th position two years ago, amounting 3.35 billion rupees of export. The pulse, both as whole and split lentils dropped by a fifth a fifth and descended to 8th rank last year. Lentils, mostly exported to Bangladesh, Singapore, Sri Lanka, Germany, Korea, UK, Indonesia, the export remained stagnate to 2.54 billion rupees of export in the year 2013, however, climbed to one position to 8th in rank.

10.  Jute Bags and Sacs:

One among the coarse fiber products of Nepal, Jute bags and Sacks was 12th in position in 2010/11, exporting 2.1 billion rupees. The following year, it rose to 8th position with a slight addition of a tenth in business to 2.34 billion rupees. This year, in 2012/13, with feeble improvement, it exported the amount of 2.54 billion rupees, and achieved the 10th position.

Export of first four months of FY 2013/14(July-Oct)

Source: Trade and Export Promotion Center, 2014

Owing to colossal imports recently, Nepal is facing a hefty loss in international trade. Further, Nepal has witnessed a continual decline in export performance. In addition, supply side constraint, we are unable to produce high quality finished products. Therefore, we are exporting, mostly-raw materials, hand woven products and wild crafted items. Due to the staggering imports, the overall trade falling to its knees. In the time of soaring loss in international trade, the aforementioned products are still surviving the chaos, and doing well in terms of their export from the country.