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Home Prime News

Government Assures Adequate Sugar Supply Despite India’s Export Ban

CEO Tab by CEO Tab
May 18, 2026
in Prime News
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India extends ban on sugar exports by a year
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The government has assured the public that there will be no shortage of sugar in the domestic market despite India’s recent ban on sugar exports. According to Ministry of Industry, Commerce and Supplies, the country currently has enough sugar stock to meet domestic demand for the next eight months.

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In a press statement, the ministry said that discussions with traders and sugar producers confirmed their commitment to ensuring a smooth and regular supply of sugar even after India’s restrictive measure.

India’s Directorate General of Foreign Trade announced a ban on sugar exports until September 30 through a notice published in the government gazette on Wednesday. The decision was reportedly taken due to lower sugarcane production during the country’s main harvesting season.

The Indian export restriction had raised concerns about possible shortages and price hikes in Nepal, which depends heavily on sugar imports from India because of its limited domestic production capacity.

Government data shows that Nepal’s annual sugar production has declined from 155,000 tons to 120,000 tons due to a sharp drop in sugarcane production. Meanwhile, the country’s yearly sugar demand stands at around 270,000 tons, with per capita consumption estimated at 4–6 kilograms.

Nepal’s average monthly sugar demand ranges from 20,000 to 25,000 tonnes, while consumption rises to nearly 30,000 tonnes during major festivals such as Dashain, Tihar, and Chhath.

The ministry stated that sugar stocks held by private sugar industries as well as government-owned entities including Food Management and Trading Company Limited and Salt Trading Corporation Limited are sufficient to maintain supply for the coming months.

The MoICS also pledged to strengthen market monitoring, supply management, and coordination among institutions to prevent artificial shortages, black marketing, hoarding, and unreasonable price increases. Additionally, the ministry said it is working on long-term measures to improve domestic sugar production and achieve greater self-reliance in the sector.

The government has urged the public not to stockpile sugar unnecessarily, warning that panic buying could negatively affect the national supply chai

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Manish Raj Poudel
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