Kathmandu: Indian government’s decision to impose restrictions on sugar export may hit the domestic market of Nepal, reports The Himalayan Times.
Sashikant Agrawal, president of Nepal Sugar Mills Association said that India’s decision is a step towards protecting the domestic market. It is sign of growing protectionism around the world. The move may hit the Nepal’s domestic market as price will rise due to tight supply.
He said, “Local production is not sufficient to cater to domestic demand and therefore price rise is expected.”
Economist Dilliraj Acharya said, “India’s decision would affect the supply chain of the sugar market in Nepal. Sugar is one of the important staple commodities in Nepali Kitchens and also one of the major raw materials for some industries. The move by Indian government will result in price rise of sweetener.”
According to the media report, the Nepal government is exploring alternative markets for sugar imports.
The global shortage of sugar has triggered the demand, hence Indian government has taken a precautionary step by putting a cap on the export of sugar to 100 lakh metric tonnes (LMT).