With increasing global awareness of eco-friendly products, demand for sustainable goods is on the rise, leading to a significant growth in Nepal’s exports of such items. According to the Trade and Export Promotion Center (TEPC), products like Amriso (broom grass), jute, and other plant-based commodities are gaining popularity in international markets.
Nepal’s Amriso exports, once valued in millions, have now reached the billion-rupee mark. TEPC data reveals that in the fiscal year 2019/20, Nepal exported Amriso worth Rs 557.4m, which increased to Rs 658.8m in 2020/21 and Rs 699.8m in 2021/22. The export value saw a significant jump in 2022/23, reaching Rs 1.88bn. In the latest fiscal year 2023/24, Amriso exports further grew by 31.37 percent, reaching Rs 1.32bn.
Despite the growth in demand for some eco-friendly products, certain trade barriers have hindered their full market potential. Jute, once a major export commodity for Nepal, has experienced fluctuations. While Nepal exported jute fiber worth Rs 18.77m in 2022/23, the figure rose to Rs 151m in 2023/24. Overall, the export of jute products increased from Rs 3.18bn in 2019/20 to Rs 6.13bn in 2021/22. However, in the last two fiscal years, exports have declined, with jute product exports standing at Rs 1.45bn in 2022/23 and Rs 842m in 2023/24.
While Nepal has the potential for jute production, high non-tariff barriers in India have posed challenges. Nepal imports most of its raw materials from India and Bangladesh for processing and exporting eco-friendly products. Previously, the Morang Jute Mill played a crucial role in Nepal’s jute industry, but its closure affected production. Currently, Raghupati Jute Mill remains active in jute exports.
Environmental experts highlight the need to replace plastic with nature-based alternatives. Climate expert Dharma Upreti emphasizes, “Plastic must be phased out in favor of natural products. For instance, alongside Amriso and jute, Nepal has started producing eco-friendly plates from areca palm leaves.” He further noted that promoting nature-based products could not only reduce Nepal’s dependency on plastic imports but also boost sustainable economic growth.
Similarly, entrepreneur Darshana Shrestha, who specializes in skin care products, stressed the increasing consumer preference for eco-friendly goods. “People are actively looking for sustainable products. I have transitioned from plastic packaging to biodegradable alternatives,” she said.
Experts suggest that Nepal should revisit its policies and regional trade agreements to harness the full potential of its eco-friendly exports. Political economist Soumitra Neupane advocates for stronger government intervention to support the industry. “Countries across South Asia are making rapid advancements in sustainable production. Nepal must strengthen its policies and trade agreements to remain competitive,” he stated.
Eastern Nepal, including Ilam, Panchthar, and Taplejung, is known for Amriso production. Historically, jute was a dominant crop, but the rise of plastic usage led to a decline in jute farming. Dr Ram Krishna Shrestha, Joint-secretary at the Ministry of Agriculture and Livestock Development, explains that water scarcity and labor-intensive processing have contributed to the decline in jute production. “Jute processing requires large water reservoirs, but with decreasing water availability, production has suffered,” he said.
While Nepal has yet to implement a dedicated program to promote eco-friendly production, some policymakers and experts advocate for greater investment in the sector. Agriculture expert Dr Krishna Paudel stresses the environmental and economic benefits of Amriso and jute farming. “Amriso is not just an agricultural product; it also plays a vital role in soil conservation. Its deep roots help prevent erosion, making it an environmentally valuable crop,” he noted.
As global demand for sustainable goods rises, Nepal has an opportunity to strengthen its eco-friendly production and exports. Experts and entrepreneurs alike call for policy support and investment to maximize the country’s potential in the green economy.
