KATHMANDU: Nepal’s exports of all its top 20 products increased in value during the first month of the current fiscal year, with total merchandise exports rising sharply compared with the same period last year.

According to data from the Department of Customs, exports of each of the top 20 products increased in value in the first month of the current fiscal year compared with July/August of the previous fiscal year.

The largest increase was recorded in iron, steel and their products. Exports of the category rose from Rs 355.9 million last year to Rs 2.04 billion this year, an increase of 472.59 percent.

Exports of dog and cat food, mainly processed chhurpi, increased by 188.02 percent to Rs 531.2 million. Palm oil exports rose 130.47 percent, plywood 123.24 percent and cardamom 109.85 percent. Exports of jute and jute products increased 96.88 percent, aluminium and its products 93.71 percent, and sunflower oil 85.85 percent.

However, higher export values do not necessarily reflect higher volumes. Woollen carpet exports, for example, increased 3.46 percent in value to Rs 848.9 million, while the quantity exported fell from 26,949 square metres to 25,025 square metres. The increase in value was therefore driven largely by higher prices.

Soybean oil remains by far Nepal’s largest export item. Exports of soybean oil reached Rs 17.99 billion in the first month, accounting for 46.49 percent of total merchandise exports. Iron and steel products accounted for 5.27 percent, yarn 4.37 percent, palm oil 4.25 percent and jute and jute products 3.17 percent.

The top 20 products generated around Rs 33.95 billion in exports, accounting for nearly 88 percent of Nepal’s total merchandise exports of Rs 38.70 billion during the month.

Overall merchandise exports increased 61.74 percent, from Rs 23.93 billion in the same month last year to Rs 38.70 billion this year, according to the Department of Customs.

But the composition of that growth raises questions about its sustainability. Vegetable oils—particularly soybean, palm and sunflower oil—account for a substantial share of exports, while exports of many domestically produced, higher-value products remain relatively small.

Foreign trade expert Ravishankar Sainju said the export surge is encouraging, but the figures should not be viewed in isolation.

“We tend to celebrate export figures, but we never analyse the imports made to generate those exports,” Sainju said. “We need to look at both imports and exports of each product to assess the real trade deficit and the value actually added in Nepal.”

He said analysing how much crude soybean oil is imported, how much is re-exported after processing and how much value is genuinely added in Nepal would provide a more accurate picture of the country’s export performance.