Overview

Only 15 percent of Nepal’s land is arable, and productivity is low due to structural impediments, including poor road infrastructure and small-scale farming.  As a result, Nepal imports a significant amount of food products, though U.S. products are less price competitive than cheaper Indian and Chinese products.  However, the demand for U.S. farm, food, and dairy products has slowly increased in the last few years and U.S. goods now constitute ten percent of imports in the market sector.  Nepal also offers opportunities for U.S. exports of seeds and fertilizers.  2019 saw a dramatic increase in imports of U.S. soybeans and animal feed products.  In January 2014, Nepal’s Supreme Court imposed a ban on the import of genetically modified and hybrid seeds, and that market remains closed.  Due to the small scale of its fertilizer orders, the Nepali fertilizer market is largely untapped by U.S. companies.

Exports/Imports of Agricultural Products (U. S. $ thousands)

(total market size= (total local production + imports)-exports)

Total Imports:  Trade and Economic Promotion Center, Nepal

U.S. Imports:  Trade and Economic Promotion Center, Nepal

Leading Sub-Sectors

• Rice
• Legumes
• Dried pastas, Bread
• Pastry, cakes, and biscuits
• Vegetable oil
• Capsules for medicine
• Packaged/processed foods
• Fruits
• Seeds, animal feed

Opportunities

Demand for U.S. bread, pastry, cakes, biscuits, and other bakery products has gradually increased in the Nepali market.  The presence of flavored waters and other nonalcoholic beverages, food preparations, ethyl alcohol, spirits, and liquors has also increased.  Other opportunities are processed, packaged, canned foods.  Imports of seeds and animal feed have also increased.

Resources

United States International Trade Commission https://www.usitc.gov/

Trade and Export Promotion Center, Nepal http://www.tepc.gov.np/