9 Major Export Products of Nepal

Due to Nepal’s proximity to India and China, two of the world’s most populated countries, it has easy access to both countries’ thriving economies. Import tariffs are extremely low, making Nepal an appealing investment destination for Indians as well. In several developed-country marketplaces, Nepal is also entitled to preferential treatment. Nepal’s natural and cultural features also present a significant opportunity for investment. The climate in the country is diverse, ranging from tropical to sub-arctic. In the south, the geography is mainly mountainous near sea level. Nepal produces a wide range of agricultural products, as well as medicinal plants and high-quality tea. Hydropower has a large potential, with around 43,000 MW being technologically possible.

The Nepalese government has made provisions for a monetary incentive of up to 5% for the export of certain products. Exports of fifteen distinct products are eligible for a 5% cash incentive based on the total exported value, according to the new regulation. Processed tea, coffee, handicraft and woodcraft, leather products, processed ginger, processed honey, handcrafted paper, and mineral water are among the 15 products eligible for a 5% cash reward. Similarly, exporters of 11 products are eligible for a 3% monetary incentive. Ready made garments, carpet and woolen items, medications, and jewelry decorations are only a few examples. Some of the major export products of Nepal are as follows:

Pashmina

Pashmina is made from the finest wool found in the inner coats of the Himalayan goat, Chyangra (or Carpa Hircus). These Chyangras can be found in Nepal’s highest mountains and remotest settlements. Some of the finest, softest, warmest, and lightest wool found in all of nature may be found beneath the animal’s primary outer coat, and it is often recognized as the most delicate and refined wool on the planet. As a result, it’s also known as “Diamond Fiber” and “Soft Gold of High Asia.” As a result, the fiber is unlike any other in terms of distinctiveness and elegance. Pashmina is known for its fineness, and its fiber is commonly thought to be less than 17 microns in diameter, necessitating the assistance of some of the world’s best artisans. Shawls, clothing, carpets, blankets, stoles, and other items made from the soft pashmina fiber are only a few examples.

Nepal’s pashmina products are among the country’s most popular exports. Pashmina products are in high demand throughout Europe, the United States, and Japan because of their superior quality. The logo ensures the final product’s quality as well as quality assurance along the value chain. In Nepal, the pashmina industry employs more than 25,000 people directly. Women are the bulk of people employed, and they are responsible for growing goats, refining and maintaining fibers, and making pashmina outfits. Traditional crafts and mechanical handlooms are mostly used in factories to prepare pashmina items, guaranteeing that the maximum number of people are employed.

Tea

Tea farming in Nepal has a long history, beginning in 1863 with the foundation of the Ilam Tea Estate in the Ilam District’s hills. Historians claim that the first tea plants in Nepal were planted from seeds sent as a gift by the Chinese Emperor to Jung Bahadur Rana, the then Prime Minister and de facto ruler of Nepal. Tea plantations in Nepal are thought to have begun about the same time as those in India’s Darjeeling Hills. Camelia asamica and C. asamica spp lasiocalyx for CTC, and Camellia sinesis for orthodox tea, are the three main varieties of tea grown in Nepal. Nepali conventional tea has a similar appearance, scent, and fruity flavor to Darjeeling tea. The reason for the similarities is that Nepal’s eastern zones, which are the country’s principal tea-producing regions, have comparable geological and topographical circumstances to Darjeeling and are adjacent to one another. Nepalese teas however distinguish themselves from Darjeeling teas. Tea enthusiasts consider some Nepalese teas to be superior to Darjeeling teas in terms of fragrance, fusion, taste, and color. Nepal Tea is in a unique situation because of its biodiversity, topography, and organic matter-rich soil.

Nepalese teas grown at higher elevations have more flavor than tea is grown at lower elevations. Tea bushes in Nepal are young and grown at a high elevation. Nepal is an ideal country for tea growth due to its warm and humid environment, ample rainfall, and lengthy daily exposure to sunshine. The soil, climate, and terrain of Nepal’s central and eastern corridor between the Himalaya and Terai landscapes are perfect for the cultivation of organic tea. Nepal produces 23,821 metric tons of tea per year. Jhapa, Ilam, Panchthar, Dhankuta, and Terathum are the five districts in Eastern Nepal where tea is mostly farmed. Jhapa is Nepal’s major tea producer, accounting for more than 75 percent of the country’s overall tea production, followed by Ilam, which produces roughly one-sixth of the country’s total tea production.

Handwoven Carpets

Over the years, handwoven carpets have been one of Nepal’s most important exports. After commercial carpets began to be produced in Nepal, the product’s quality has garnered attention from all around the world. Nepali carpets, which are often composed of wool and silk, are known for their double-knotting system, high pile density, and environmentally friendly manufacturing process. Hand-woven carpets are being sold to over 60 countries for roughly USD 70 million, making it one of Nepal’s greatest exports. With the inflow of Tibetan refugees in the early 1960s, the development of an export quality carpet began. Through financial and technical assistance to Tibetan refugee resettlement initiatives, the Swiss Agency for Technical Assistance (SATA) helped the growth of the carpet industry in Nepal. It was first established as a source of income for Tibetan exiles, with marketing limited to visitors visiting Nepal. In the 1960s, Nepal began commercially shipping hand-knotted Tibetan carpets to the worldwide market with a sample shipment to Zurich, Switzerland, as a result of its efforts to obtain access to the international market.

Hand processing is evident in the Nepali-Tibetan carpets, which have knot counts ranging from 60 to 150 per square inch. Only the highest-grade fleece wool is imported for use in these carpets, thanks to regularity protections. These rugs are manufactured from the finest fleece wool sourced from Tibet, New Zealand, and the United Kingdom. Natural and synthetic colors are both available for these carpets. Traditional Nepali-Tibetan carpet designs are mostly influenced by Buddhism, but in recent years, Nepali manufacturers have expanded their designs to include new and contemporary styles and colors while maintaining the traditional touch. In Nepal, over 600 cottage and small-scale companies produce carpets, with an annual output of 600,000 to 700,000 meters. While the majority of carpets are made of wool or silk, the growing need for environmentally friendly sustainable production techniques has encouraged the use of traditional materials such as hemp, allo, and jute. As a result, local products are gradually replacing imported raw materials in Nepal’s carpet manufacturing process.

Footwear

Footwear is among the few industries in Nepal that are currently expanding. Despite its relatively early beginnings, Nepal’s footwear sector presently supplies roughly 43% of the country’s domestic market. This is even though client preferences for footwear, like those for other apparel and fashion items, fluctuate frequently. While official data on overall footwear production isn’t available, some research estimates that Nepal produces roughly 12.6 million pairs of shoes and other footwear goods each year. 60,000 individuals are employed in this area, with 30% of them being women. Additionally, approximately 20% of women work in administrative positions. Women’s footwear made of natural fibers or felt provides greater job prospects.

In comparison to growing environmental concerns in the worldwide footwear industry, the Nepalese footwear industry has a minimal environmental impact. This is backed by the fact that half of the Nepalese footwear manufacture is manual and uses very little electricity. The majority of Nepalese shoemakers employ conventional manufacturing processes to create leather-based shoes. Although it is inefficient and time-consuming, it guarantees the clients’ uniqueness and quality. Furthermore, cut leather parts are carefully disposed of, synthetic cut pieces are recycled, there is no noise or smoke produced, and water usage is minimal. As per the Nepal Footwear Manufacturers Association, the yearly production capacity is projected to be around 30 million pairs. Footwear production employs 60,000 people, with women accounting for 30% of the workforce. By 2020, the footwear industry is planned to expand annual production to 45 million pairs and export volume to over 12 million pairs. The Kathmandu Valley is home to nearly all of the footwear manufacturing facilities.

Silver Jewelry

For thousands of years, silver has been used as ornaments and utensils, as well as for trade and as the foundation for numerous monetary systems. Although silver was once used to make utensils, coins, and medals, today it is most famous for its beauty and attractiveness as a piece of jewelry. When placed into a ring or a necklace, silver has traditionally been known to enhance the beauty of precious stones. Nepali silver jewelry is known for its high quality and unique designs all over the world. Nepalese silver ornaments are sold as high-value goods in its commerce basket to a variety of countries throughout the world, providing money to the maker and significant foreign exchange to the government. Designs for silver handicrafts in Nepal date back centuries. Since ancient times, the Shakya and Sunar families have been creating silver jewelry, primarily in the Kathmandu Valley. People of various races and cultures live in Nepal. Nepalese handicrafts showcase our country’s unique religious culture and traditions. We make sculptures and figurines of our gods and goddesses, the stones in our pendants have a religious significance, and we place a premium on the quality of our products and jewelry precisely because of these cultural ties. These jewelry pieces highlight our traditional art and history.

Handicraft makers in Nepal create a diverse range of products. Pendants, chains, earrings, necklaces, rings, and hair clips manufactured of at least 92.5 percent pure silver with or without semi-precious stones can be purchased for personal use. You can also purchase our high-quality beads and brooches to complement your outfits. You can also purchase boxes and showpieces to complement your home’s decor. In 2015, Nepal produced 0.8 million ounces of silver jewelry, making it Asia’s tenth-largest silver jewelry maker. Nearly half of Nepalese silver jewelry output is exported, with the remainder destined for the home market. The export value in the fiscal year 2015/16 was USD 1.2 million.

Ginger

One of the most widely used spices in the world is ginger. Due to its taste and therapeutic benefits, the ever-famous rhizome is frequently utilized in kitchens all over the world. It is used as anti-inflammatory medication in the South Asian subcontinent, yet studies have shown that it can also be used for cold and flu prevention and treatment, morning sickness, and even cancer treatment. The most common medicinal application of ginger is as a digestive aid for tummy pain, nausea, and diarrhea, as well as morning sickness and travel sickness. High quantities of gingerol, a strong component that gives it its natural zingy flavor and serves as an anti-inflammatory in the body, are thought to be the reason for this. Ginger’s anti-inflammatory characteristics are known to give pain relief in a variety of ways, from preventing migraines to reducing arthritis pain.

Nepal ranks third in the world for ginger production. Nepalese ginger is regarded to be organic and of good quality in terms of oil content and fiber level. Even though some exporters promote their products in Japan and the Arabian Peninsula, Nepalese ginger is largely exported to India. Nepal is a major supplier of ginger to the United States, the United Kingdom, and Australia. Nepal yields around 250,000 MT of ginger, with exports accounting for more than half of the total output. Around 200,000 families are thought to be involved in the manufacturing of ginger in Nepal. In Nepal, ginger is grown in more than 65 districts. The primary ginger-producing districts in Nepal are Doti, Kailali, Surkhet, and Salyan in western Nepal; Palpa, Syangja, and Nawalparasi in central Nepal; and Ilam, Jhapa, and Sindhupalchowk in eastern Nepal.

Large Cardamom

The Nepali large cardamom (Amomum Subulatum Roxburgh.) – commonly known as “black gold” or “black cardamom” and locally known as alainchi-is a member of the Zengiberaceae plant family. Large cardamoms have spindle-shaped pods that range in hue from light to dark brown. The pods are usually 20 mm to 35 mm in diameter and contain many black seeds with a pungent scent inside. It’s a herbaceous, evergreen plant that grows on north-facing hill slopes. The plant is climate-sensitive, requiring temperatures between 15 and 25 degrees Celsius. It grows between 800 and 2,100 meters and prefers humid weather and shade. A plant has a lifespan of 20 to 25 years. For ages, households in South Asia have used huge cardamom as a symbol of wealth in their traditional dishes because of its smokey flavor. When compared to green cardamom, huge cardamom has a distinct roasted aroma and flavor, as well as a brownish appearance that comes from an ancient drying procedure. Because of a special type of postharvest drying in Bhatti furnaces, Nepali black cardamom has a unique taste and texture, which describes the burnt smell and taste. The smokey flavor would overpower a sweet cake or pudding, but it adds a smoldering depth to roasted meats or a full-flavored stew that no other spice can.

Cardamoms grown in Nepal are 100% organic, and they give revenue to primarily low-income families in rural Nepal. Nepal’s second-biggest export commodity and largest agro-based export is huge cardamom. Large cardamom was Nepal’s second-largest export after handmade carpets, with USD 46 million sold between April 2015 and March 2016. The entire trade volume of large cardamom was 4,470 tons valued at NPR 7,179 million in fiscal year2014/15, per the Ministry of Agriculture Development. Large cardamom is planted mostly in Eastern Nepal, with four districts accounting for more than 80% of national production: Taplejung, Panchthar, Ilam, and Sankhuwasabha. Approximately 60,000–70,000 families are believed to be associated with cardamom production. Taplejung district had the largest output (27 percent of total output) in2014/15, followed by Sankhuwasava (21 percent), Panchathar (12 percent), Ilam (10 percent), and Khotang (8 percent), with the rest 22 percent coming from other districts. Approximately 66-70000 households are expected to be involved in the cultivation of huge cardamom in Nepal. India is Nepal’s major importer of huge cardamom. The Food Safety and Standards Authority of India (FSSAI) has established the features for huge cardamom in its Food Safety and Standards (Food Products Standards and Food Additives).

Medicinal and Aromatic Plants

Nepal’s substantial altitude range, spanning from 67 meters in the south-eastern Terai to 8,848 meters in the world’s tallest summit, Mt Everest, affords Nepal a great variety of floral assets. There are 35 different types of forests and 118 different ecosystems in the country, which are home to 2% of the world’s flowering plants and an estimated 7,000 higher-value plant species. According to another estimate, Nepal has 5,865 blooming plants, with 690 species thought to have therapeutic properties. According to the Medicinal and Aromatic Plants Database of Nepal (MAPDON), Nepal possesses 1,624 medicinal plant species, with roughly 100 of them traded annually. Merely 23 species, on the other hand, have been sold in large quantities over the years. Nepal is home to some of the most distinctive and precious herbs and medicinal plants, including yarshagumba, chiraito, and jatamansi, thanks to its diverse climatic circumstances. Medicinal plants are gathered and developed for several reasons, including Ayurveda, Homeopathy, and other types of traditional medicine.

Aromatic plants are also utilized to make essential oils, which are used to make flavors and perfumes. Essential oils are made from herbs such as sugandhawal, zedoary, cinnamon, chamomile, citronella, juniper berries, and lemongrass, and are sold to Europe, the United States, East Asia, and India. The woods and grasslands of northern Nepal are home to the majority of Nepal’s high-value MAPs. MAPs with lower values are produced below 2,000 meters. As per a recent estimate, 85% of Nepal’s MAPs are gathered in the country’s mid-western and far-western regions. According to recent estimates, 300,000 families are active (directly or indirectly) in the collection of MAPs in 58 districts across Nepal, with another 100,000 willing to join if the right conditions are created. Women make up more than half of those involved in the gathering, cleaning, and grading of MAPs.

Honey

Nepal has rich and illustrious beekeeping and honey-hunting heritage that dates back thousands of years. Beekeeping with Apis cerana, a native hive-bee, is an old tradition that has been passed down through the generations and is still in its early stages. Apis cerana colonies are housed in log and wall hives with little to no management other than honey harvesting once or twice a year. Apis cerana beekeeping is a hobby for many farmers who also grow a range of crops, raise livestock, and engage in a variety of other activities to supplement their income. Nepal manufactures a wide range of specific honey and other bee products that are prized for their purity and medicinal properties. The bulk of Nepalese honey is multi-floral. Oral honey from chiuri (Indian butter tree), mustard, buckwheat, rudilo (Pogostomone spp), sunflower, and litchi is a good example. In Nepal’s alpine locations, honeydew honey is obtained from pine and spruce trees (Salle Maha) and oak trees (Dalle Maha). In Nepal, the majority of honey is obtained by pressing the combs with one’s hands. In Nepal’s highland regions, where Apis cerana beekeeping is performed in fixed comb log and wall hives, squeezed honey is fairly frequent. Centrifugal extraction is used to extract some honey, primarily honey produced by Apis mellifera beekeepers that keep bees in mobile frame hives.

Nepal is home to five different honeybee species due to its unique weather conditions and richness of flora. The Asian hive bee (Apis cerana) and the European honeybee (Apis mellifera) are the only two that can be kept in hives and controlled for honey production and pollination. The Himalayan cliff bee (Apis laboriosa), gigantic honeybee (Apis dorsata), and dwarf honeybee (Apis florea) are all wild species. Honey and beeswax are collected from the hives of these wild bees by specialized people and tribes known as “honey hunters.” While there is no confirmed data, it is thought that there are approximately 90,000 Apis cerana hives and 20,000 Apis mellifera hives in Nepal at the moment.

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