KATHMANDU, March 7: Nepal recorded a slight decline in food imports during the first seven months of the current Fiscal Year (FY) 2025/26, according to data released by the Department of Customs. While the drop in imports is modest, it has contributed to a sharp fall in government revenue from the sector.
Statistics show that food imports worth Rs 35.62 billion were recorded between mid-July and mid-February of the current fiscal year. During the same period in the previous fiscal year 2024/25, the country had imported food items worth Rs 36.35 billion, indicating a decline of around Rs 730 million this year.
Although the reduction is not large in absolute terms, it is seen as a small sign of improvement in Nepal’s long-standing dependence on imported food. In recent years, the country has relied heavily on imports of staple items such as rice, wheat, maize, and pulses, mainly due to stagnant domestic agricultural production.
Diversifying Government Revenue
Exports, meanwhile, showed relatively positive growth, albeit from a very low base. Food exports during the seven-month period reached Rs 5.46 million, compared to Rs 2.23 million during the same period last fiscal year—more than doubling year-on-year. Despite the increase, exports remain negligible compared to imports and have had little impact on improving the trade balance.
The food trade deficit during the review period stood at Rs 35.57 billion, slightly down from Rs 36.33 billion recorded in the same period last year. The data suggest that while the deficit has narrowed marginally due to reduced imports, structural imbalances in Nepal’s food trade persist.
Government revenue from food imports, however, has dropped significantly. The government collected Rs 2.27 billion in revenue from food imports in the first seven months of the current fiscal year, compared to Rs 3.22 billion during the same period last year. This represents a decline of over Rs 1 billion.
Analysts attribute the fall in revenue to several factors, including changes in the composition of imports, adjustments in customs duties, fluctuations in international market prices, and the impact of exchange rate movements. An increase in the import of lower-priced food items may also have contributed to the decline in revenue collection.
Overall, the seven-month data indicate a slight decline in food imports and a modest rise in exports. However, the trade deficit in the sector remains high, and the drop in revenue collection is likely to add further pressure on the government’s fiscal management. Experts say that without effective policies to promote domestic agricultural production, substitute imports, and boost exports, Nepal’s structural imbalance in food trade is unlikely to improve in the long term.
