Export Trends and Market Diversification of Medicinal and Aromatic Plants from Nepal: A Five-Year Analysis
This study examines export trends and market diversification of medicinal and aromatic plants (MAPs) from Nepal over five fiscal years (FY 2077/78 to 2081/82), drawing on official records from Tribhuvan International Airport, the Department of Plant Resources, and the Trade and Export Promotion Centre, covering 76 commodities exported to 41 countries. Nepal exported a cumulative 24.72 million kilograms of MAPs, growing at a compound annual growth rate of 3.68 %, yet India’s volume share rose from 93.14 % to 99.24 %, and the Herfindahl-Hirschman Index worsened from 0.87 to 0.98, while non-India exports collapsed by 87.1 %. Ritha, Timur, and Chutro dominate the commodity basket, and unit values reveal an eighty-eight-fold gap between India-bound bulk exports and air-freighted essential oils to the United States. Findings indicate deepening India-dependency rather than diversification, and the study recommends targeted policy and commodity-level interventions to build high-value, diversified export corridors for Nepal’s MAP sector.
Keywords: Medicinal and Aromatic Plants, Nepal, Export Trends, Market Diversification, Herfindahl-Hirschman Index, India Dependency, CAGR
