India stops Sugar exports; Nepal sees no immediate issue

Kathmandu – India’s decision to ban sugar exports is unlikely to create an immediate shortage in Nepal, although concerns remain about possible pressure during the festive season later this year.

India’s Directorate General of Foreign Trade (DGFT) announced on May 13 that exports of raw, white, and refined sugar have been prohibited with immediate effect until September 30, 2026, or until further notice. The Indian government said the move was taken due to concerns over possible lower sugar production and rising inflation in its domestic market.“The export policy of Sugar (Raw Sugar, White Sugar and Refined Sugar) is amended from ‘Restricted’ to ‘Prohibited’ with immediate effect till September 30, 2026, or until further orders,” the DGFT said in its notification.

India is one of the world’s largest sugar producers, and the announcement has already affected international prices. According to international media reports, global sugar prices increased by around 2 to 3 percent after the export ban was announced. The restriction, however, will not apply to previously approved export deals and certain shipments to the European Union and the United States.In Nepal, traders say sugar prices have already started to rise in the domestic market following India’s decision. The increase is also expected to affect the prices of sweets, packaged biscuits, confectionery products, and other food items that rely heavily on sugar.Despite this, officials say there is currently no immediate risk of shortage in Nepal. Sanket Bhattarai, Assistant Chief Executive Officer of Salt Trading Corporation Limited, said Nepal still has enough sugar stock available in the market.

According to him, the biggest challenge could appear during Dashain, Tihar, and Chhath, when sugar demand rises sharply across the country. He added that India had already maintained restrictions on sugar exports in recent years, and the latest decision mainly makes the policy stricter.Bhattarai said India may be trying to secure enough stock for its domestic market due to concerns about weather conditions and lower future production. He also noted that Nepal’s sugar import requirement is relatively small and India has previously provided special quotas to Nepal even during restrictive periods.Industry representatives in Nepal have also said there is no immediate reason for panic, stating that domestic production and earlier imports should help maintain stable supply in the coming months.