India’s sugar export ban fuels smuggling ahead of peak festival season
Summary
Sugar smuggling along Nepal's border has surged after India banned sugar exports, causing price hikes and supply concerns ahead of Nepal's festival season. The government is importing sugar through agreements to manage demand amid illegal trade.
Key Points
- India imposed a sugar export ban in May 2023 until September 2026, triggering smuggling along Nepal's southern border.
- Sugar seizures by Nepal's Armed Police Force more than doubled between mid-June and mid-July 2023 compared to the previous month.
- Sugar prices in Nepal have risen from Rs95 to Rs110 per kg due to supply shortfalls caused by the export ban.
- Nepal’s government and state-owned corporations are importing sugar through government agreements to meet demand during festivals but face challenges due to high import costs and quotas.
