India’s Ban on Sugar Exports May Lead to Price Increase in Nepal

Following India’s decision to impose a ban on sugar exports, discussions have begun in Nepal regarding its potential impact. Consumers are concerned about a possible shortage of sugar in the market due to the Indian restrictions. However, Nepali sugar producers remain confident that the ban will not significantly affect them. Shashikant Agrawal, president of the Nepal Sugar Industry Association, stated that sugar supply in Nepal will remain unaffected throughout this fiscal year.

Although sugar prices might increase in the coming days, producers expect any rise to remain “insignificant.” They noted that price increases for sugar in Nepal have historically been much lower compared to other food items. Particularly during major festivals such as Dashain and Tihar, consumers have long complained about price hikes and artificial shortages of sugar in the country.

On Wednesday, India’s Ministry of Commerce issued a notification announcing the export ban on sugar. The ban immediately prohibits the export of refined, white, and other types of sugar, and will remain in place until September 30, 2026, or until further notice, according to the statement.

Nepali producers have assured that Nepal will not face sugar shortages at least until January. “During this crushing season, Nepal produced 200,000 metric tons of sugar, and according to government statistics, 75,000 to 80,000 metric tons have already been imported,” explained Shashikant Agrawal. Hitesh Golchha, shareholder of Eastern Sugar Mills in Morang, added that Nepal’s annual sugar consumption is approximately 280,000 metric tons.

Producers believe that with prioritized government support, Nepal could become fully self-reliant in sugar production within five years. “By maintaining a 30% import tariff and developing advanced seeds suitable for Nepali soil, Nepal can achieve sugar self-sufficiency in five years,” Golchha said.