Nepal seeks emergency sugar imports from India as shortage pushes prices to ₹120 per kg

Indian restrictions tighten Nepal’s sugar market

Nepal is moving to secure emergency sugar supplies from India after restrictions on Indian exports left its domestic market facing shortages and sharply higher prices ahead of the festival season. Jagran, citing Nepalese publication Ratopati, reported that retail sugar prices have risen from ₹95-₹100 per kilogram to about ₹120 per kilogram, while consumers and traders are reporting difficulty finding the product in shops.

The pressure could intensify as festivals approach. Sugar consumption during the period is expected to be twice the level recorded in normal months, according to Ratopati. The combination of stronger seasonal demand, dwindling domestic stocks and delays in import decisions threatens to put additional pressure on availability and household budgets.

India is Nepal’s principal source of imported sugar, making the Nepalese market particularly sensitive to changes in Indian trade policy. Jagran reported that the Indian government stopped sugar exports on 13 May 2026. Later in its report, the publication described the measures as restrictions on exports. In either case, access to supplies became more difficult for Nepal after the decision.

Earlier assurances give way to market complaints

Following India’s action, the Nepal Sugar Industry Association assured the government and consumers that domestic stocks were sufficient and that factory prices would not rise. Three months later, however, traders and consumers are complaining about higher prices and limited retail availability, according to Jagran.

The deterioration highlights the gap between stocks held within the domestic supply chain and sugar that is actually available to consumers at prevailing prices. Even if factories retain inventories, transport, wholesale distribution and expectations of tighter future supply can affect how quickly sugar reaches retail outlets. Festival demand increases the risk that existing stocks will be depleted faster than they can be replenished.

For Nepalese processors, wholesalers and retailers, the timing of new shipments will be as important as their size. Imports arriving after demand peaks may provide limited relief to consumers, while delays could encourage further price increases or rationing by merchants. For India, any government-approved shipment would represent a targeted exception or managed supply arrangement rather than a broad reopening of exports.

State companies prepare separate import volumes

Food Management and Trading Company Limited is in the final stage of arranging a government-to-government purchase of 10,000 quintals, equivalent to 1,000 metric tons, from India. The company’s information officer, Madhav Mishra, said the first shipment was expected to reach Nepalgunj within days. The company indicated that it could seek additional volumes if the initial supply proves insufficient.

Separately, Salt Trading Corporation has started a process, coordinated with the ministry, to bring in 2,500 metric tons of sugar for immediate needs. Information officer Kumar Rajbhandari acknowledged that supply arrangements became difficult after India imposed restrictions and said the corporation had received complaints of shortages in the market. Options under consideration include tax concessions and other mechanisms intended to accelerate purchases once ministry approval is granted.

The two announced processes cover 3,500 metric tons if both proceed in full, but the source material does not provide Nepal’s total normal or festival-period consumption. Their effect on prices will therefore depend on approval, delivery timing, distribution and whether additional purchases follow. The immediate priority for Nepal is to place sugar in retail channels before seasonal consumption doubles, while avoiding further price pressure on households and commercial users.