India’s sugar export ban fuels smuggling ahead of peak festival season

Key Points

• India imposed a sugar export ban on May 13, effective until September 30, 2026, to contain domestic prices amid drought concerns.
• Sugar smuggling along Nepal's southern border has surged, with seizures doubling between mid-June and mid-July.
• Sugar prices in Nepal have increased by around Rs15 per kg following the Indian export ban.
• The Nepal government and related organizations are importing sugar and managing stocks to address the supply shortage during the festival season.