Coal market in Nepal

Earlier Report Observations

Nepal's coal market volume grew from 1.5 million tonnes in 2018 to a peak of 2.1 million tonnes in 2021, before falling to 1.4 million tonnes in 2022. This trajectory was primarily driven by imports from India, facilitated by long-standing trade infrastructure such as the Coalibas border crossing, which has supported market development since the 1950s. Increased border activity during festivals like Dashain further boosted Nepalese consumer purchases in Indian border markets, contributing to import growth in the early years.

The COVID-19 pandemic in 2020 reduced market monitoring, leading to price hikes and black market activities, while rising petroleum product prices during lockdowns may have increased coal's attractiveness as an alternative fuel. Despite these pressures, the market remained relatively stable in 2020. The sharp market expansion in 2021 coincided with a broader economic recovery. However, in 2022, inadequate local-level market monitoring and administrative inaction led to arbitrary trading practices and further price increases, which corresponded with a significant drop in imports and total market volume.

Following 2022, coal imports continued to decline, reaching 1.1 million tonnes in 2023, before partially recovering to 1.4 million tonnes in 2024. These fluctuations occurred against a backdrop of persistent challenges in market regulation and cross-border trade dynamics.

Production coal in Nepal

In kind, 2017-2020, t

Top producers of coal, 2017-2020

World map of production of coal, 2017-2020

The coal market in Nepal experienced significant fluctuations during this period. Production reached its lowest point in 2019 at 7 184 tonnes, then saw a small gain of 0.9% year-over-year to reach 7 250 tonnes in 2020. The peak occurred in 2018 with 15 463 tonnes produced, representing a 2.2-fold difference compared to the 2019 minimum. The largest decline was recorded in 2019 at 53.5%, while the most substantial increase occurred in 2018 with growth of 112.7%.

Annual dynamics of production in Nepal in kind, 2017-2020, t

Exports coal from Nepal

Exports in kind, K t

In 2018, Nepal exported 0.1 thousand tonnes of coal, representing a dramatic increase of 1 627.0% compared to 2017.

Annual dynamics of product's exports from Nepal in kind, 2017-2020, K t

Between 2017 and 2020, Nepal's coal exports were almost entirely concentrated in India, which accounted for 100.0% of total shipments.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from Nepal in kind, 2017-2020

Exports in value, M $ US

Nepal's coal export value reached 0.1 million US dollars in 2018, marking a substantial increase of 705.0% compared to the previous year.

Annual dynamics of product's exports from Nepal in value, 2017-2020, M $ US

From 2017 to 2020, Nepal's coal exports in value terms were highly concentrated on India, which represented 100.0% of total export flows.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from Nepal in value, 2017-2020

Imports coal to Nepal

Imports in kind, K t

After two consecutive years of growth, Nepal's coal imports declined in 2020. The country imported 1 553 thousand tonnes that year, representing a slight decrease of 1.3% compared to 2019. The peak import volume occurred in 2019 at 1 573 thousand tonnes. Over the entire 2017-2020 period, imports grew by 39.5%, equivalent to an annualized growth rate of 11.7%. The largest single-year increase was recorded in 2018 at 29.5%.

Annual dynamics of product's imports to Nepal in kind, 2017-2020, K t

Between 2017 and 2020, South Africa and India dominated Nepal's coal imports by volume, together accounting for 80.1% of total shipments, with other countries making smaller individual contributions.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to Nepal in kind, 2017-2020

Imports in value, M $ US

Following two years of growth, Nepal's coal imports declined in 2020. Import value reached 181.4 million US dollars that year, showing a solid decrease of 13.8% year-over-year. The maximum import value was recorded in 2019 at 210.4 million US dollars. Over the 2017-2020 period, import value increased by 25.4%, with a compound annual growth rate of 7.8%. The largest single-year increase occurred in 2018 at 39.5%.

Annual dynamics of product's imports to Nepal in value, 2017-2020, M $ US

From 2017 to 2020, the leading sources for Nepal's coal imports by value were South Africa (40.3% of total import value), India (38.8%), and Indonesia (10.5%). Together, these three countries accounted for 89.6% of Nepal's total coal import value during this period.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to Nepal in value, 2017-2020