Amid growing trade-related challenges between India and Nepal, sugar supply has emerged as a new area of concern. India is expected to adopt a stricter approach toward sugar exports due to rising domestic demand and the possibility of lower production levels. This development could have a significant impact on Nepal, which relies heavily on sugar imports from India to meet a large portion of its domestic requirements.
According to experts, unfavorable weather conditions and damage to sugarcane crops have affected production in India. At the same time, Nepal’s demand for sugar continues to exceed its domestic output, making the country dependent on imports.
If India imposes tighter export restrictions, Nepal may need to source sugar from alternative international markets. However, longer transportation routes, higher freight costs, and import duties could increase prices considerably. As a result, both Nepal’s government and local markets may face the difficult task of maintaining a stable sugar supply while keeping prices under control.
