Speculation on the price and supply of sugar is not limited only to the domestic markets of the country, but its strong impact has been seen in the global market as well. The situation in India's neighboring country Nepal has become very bad.
Since India's ban on sugar exports, the concern of Nepali markets and consumers started increasing continuously. Now, amid the upcoming festivals, the retail price of sugar is going completely out of the budget of common consumers.
Demand doubles during festival, stock decreases
According to the report of Nepali media Ratopati, sugar consumption during the upcoming festivals in Nepal is estimated to be double compared to the normal period. This is raising concerns that delays in import decisions and depletion of domestic sugar stocks could put further pressure on prices and availability. Sugar prices in Nepal have increased from ₹95-₹100 per kg to around ₹120 per kg, while there are reports of acute shortage in the retail market.
Nepal in trouble due to India's decision
The Indian government had banned the export of sugar on May 13, 2026, after which reports of shortage started coming in Nepal. The government and consumers were assured by the Nepal Sugar Industry Association that domestic stocks were sufficient and factory prices would not increase.
This assurance was given soon after India decided to ban sugar exports. However, after just 3 months the situation there deteriorated completely, because India is the main source of sugar imports for Nepal. Despite earlier assurances from the industry, traders and common consumers are now complaining of rapidly rising prices and non-availability of sugar in stores.
Nepal preparing to buy sugar from India
Just before the start of the festivals, the Nepal government is making emergency preparations to import sugar from India. According to Madhav Mishra, information officer of Food Management and Trading Company Limited, the company is in the final stages of arrangements to import 10,000 quintals (1,000 metric tons) of sugar under a government-to-government (G2G) agreement with India, Nepali media reported.
The first consignment is expected to reach Nepalgunj within a few days. Along with this, the company has indicated that if the initial supply proves to be inadequate, additional quantity of sugar can also be called for.
Rajbhandari accepted dependence on India
According to Kumar Rajbhandari, information officer of Salt Trading Corporation, the process of bringing 2,500 metric tonnes of sugar has been started in coordination with the concerned ministry to meet the immediate needs. Similarly, as festivals approach, large quantities of sugar will be procured in coordination with the Ministry to make sugar available to consumers at affordable prices.
Information officer Rajbhandari openly admitted that the supply arrangement has become very difficult after India imposed some restrictions on sugar exports. He said, “We have continuously received complaints of shortage of sugar in the market. However, we are in constant touch with the ministry. We are preparing to bring sugar as soon as possible through tax exemption or other alternative means. This serious problem of the market will be resolved once we get the final approval from the ministry.”