DistantNews
Support us
🇳🇵 Nepal /Economy & Trade

Sugar prices climb Rs15/kg as India export ban bites, but Nepal sees adequate stocks

From Kathmandu Post · () English

Translated from English, summarized and contextualized by DistantNews.

At a glance

News Named sources Context piece
  • Sugar prices in Nepal have risen by approximately Rs15 per kg in the past month following India's ban on sugar exports.
  • Government officials and industry stakeholders claim domestic and imported stocks are sufficient for at least six months, with no immediate plans for market intervention.
  • Consumer rights activists warn of further price hikes during the festive season and urge the government to initiate import negotiations and strengthen market monitoring.

Sugar prices have climbed by about Rs15 per kilogram in Nepal over the last month, a surge attributed to India's recent ban on sugar exports. Retail prices have jumped from roughly Rs95 to Rs110 per kilogram.

The government should begin negotiations to import sugar through a government-to-government arrangement because traders have already started increasing prices.

— Madhav TimalsinaPresident of the Consumer Rights Investigation Forum, urging government action.

Despite the increase, Nepalese authorities and industry players maintain that existing domestic and imported sugar stocks are adequate to meet demand for at least the next six months. They state there are no immediate plans to intervene in the market or seek supplies from India.

However, consumer rights advocates express concern that prices could escalate further during the upcoming festive season. They are calling on the government to proactively negotiate sugar imports through government-to-government channels and to enhance market surveillance. Activists argue that traders are using India's export ban as a justification for price increases, even with sufficient inventories.

We are not requesting sugar supplies from India for now because stakeholders have informed us that current stocks are adequate.

— Industry ministry officialSpeaking on condition of anonymity, explaining the current stance on imports.

An anonymous industry ministry official confirmed that discussions with stakeholders indicate current stocks will last until October. While acknowledging that prices might rise by approximately Rs5 per kilogram due to increased transportation costs, the official stated there is no justification for artificial shortages and warned of action against market manipulators. The ministry added it could approach India for supplies if demand spikes significantly during the festive period.

There is no justification for creating an artificial shortage and warned that those found manipulating the market would face action.

— Industry ministry officialWarning against market manipulation.

India imposed a ban on sugar exports, including to Nepal, on May 13, citing concerns over potential reductions in agricultural output due to El Niño-related weather conditions. This ban is set to remain in effect until September 30, 2026, unless otherwise notified. This restriction follows a partial relaxation of a previous ban and does not affect exports to the European Union and the United States under specific quotas.

Stakeholders informed us that prices could increase by around Rs5 per kg, mainly because of higher transportation costs rather than India’s export restrictions.

— Industry ministry officialExplaining potential price increases.
DistantNews Editorial

Originally published by Kathmandu Post in English. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

More Stories

From Our Blog