Sugar Prices Hit ₹100/kg in Nepal Border District. Here’s Why?

Sugar prices have increased to nearly ₹100 per kg in Nepal’s Baitadi district. This  is followed by restrictions on sugar exports from India. Moreover. the sharp increase has raised concerns among consumers, traders and businesses in the border region.

Baitadi residents depend heavily on India’s Jhulaghat market for sugar and other daily-use products. As the supplies from India halted, sugar prices in Nepal have risen sharply. Currently, Sugar is selling at nearly ₹100 per kg in Baitadi which is equal to around NPR 160. Not only this, but the local businesses have felt the impact. One hotelier saying higher sugar costs have made the price of a cup of tea to NPR 30.

Notably, the situation highlights Nepal’s dependence on imports to meet domestic consumption. Nepal’s annual sugar demand is estimated at around 300,000 tonnes. However, domestic sugar production remains insufficient to meet the requirement, creating a need for sugar imports.

Recently, India had restricted sugar exports to Nepal until September 30, 2026, or until further orders. As of the latest report, customs officials at Jhulaghat said they had not received a new order regarding the restrictions.

In addition, the rise in prices of sugar has affected cross-border trade. Traders in Jhulaghat reported fewer Nepalese customers, who previously purchased sugar along with other household products.

As the Nepal’s sugar industry facing supply challenges, any restriction could keep pressure on sugar prices and increase costs for consumers and businesses.