India’s protectionist policies squeeze Nepali markets and raise food security fears
Summary
India has imposed a sugar export ban affecting Nepal and other countries to contain domestic prices amid fears of drought and production drops due to El Nino, raising concerns over Nepal’s food security and market disruptions.
Key Points
- India has again banned sugar exports to Nepal and other countries until September 2026 to contain domestic prices amid drought fears caused by El Nino.
- Nepal is heavily impacted by India’s protectionist trade policies, particularly on sugar and rice, leading to price spikes and supply shortages.
- Nepal depends on India for over 60 percent of its trade and faces challenges sourcing food from alternative markets due to high logistics costs and economic constraints.
- Experts warn that ongoing weak monsoon rains, fertilizer shortages, and rising fuel prices could exacerbate Nepal’s food security challenges and agricultural sector risks.
