Sugar Price Rises in Nepal as India's Export Ban Squeezes Supply Ahead of Festivals

Kathmandu — Wholesale sugar prices in Nepal rose 1.82% today to NPR 5,600.00 per 50kg bag, according to NepalCommodity's daily price board dated 13 August 2026 (2083-04-28 B.S.), as supply pressure builds ahead of the festival season. The increase comes against the backdrop of India's export ban on raw, white, and refined sugar, in effect since mid-May 2026 through 30 September 2026 or further notice. India is Nepal's primary source of imported sugar, and the restriction has already pushed retail prices higher in recent weeks, with reports citing sugar rising from around Rs 95 to around Rs 110 per kilogram in Kathmandu markets since the ban began. Nepal relies on imports to cover a significant share of its sugar needs. Domestic demand stands at roughly 300,000 tonnes annually, while local production from the country's 12 sugar factories covers only around 100,000 tonnes, leaving an annual deficit of close to 100,000 tonnes that must be met through imports — primarily from India. Demand is expected to climb further in the coming weeks as Nepal enters its peak festival season. Monthly sugar consumption typically ranges between 20,000 and 25,000 tonnes but can rise to around 30,000 tonnes during Dashain, Tihar, and Chhath. Officials at Nepal's Salt Trading Corporation and the Nepal Sugar Producers Association have stated that current stock levels are sufficient to meet near-term demand. However, supply concerns have already led to reports of cross-border smuggling activity along the Nepal-India border, as traders seek to move sugar despite the formal export restriction. Internationally, sugar benchmark prices have also been firm, with raw sugar futures on ICE reaching a one-year high this week amid concerns over weather-related harvest delays in Brazil, the world's largest producer. Nepal's government has previously reduced import duty on sugar to ease consumer costs, though the extent of current relief measures was not independently confirmed as part of today's report. NepalCommodity will continue tracking sugar prices closely as the festival season approaches. Prices reflect published wholesale marks as listed on NepalCommodity's commodity board and are subject to change. Additional context sourced from Kathmandu Post, eKantipur, Reuters, and ChiniMandi reporting.