Nepal faces essential goods shortages ahead of festive season

Nepal is facing rising prices and supply shortages for essential goods, including sugar, cooking oil, rice, and LPG, ahead of the Dashain, Tihar, and Chhath festive seasons. Sugar prices have surged significantly, with some markets reporting costs as high as Rs 170 per kg, up from approximately Rs 95 per kg in April.

The sugar shortage is attributed to high international prices and export restrictions from India. While the government approved the import of 25,000 tonnes of sugar at a reduced 1% customs duty, importers note that sourcing from third countries remains expensive. State-owned entities, including the Salt Trading Corporation and the Food Management and Trading Company, are working to stabilize the market by selling sugar at controlled rates and managing incoming consignments from India.

In addition to import challenges, domestic distribution has been hampered by road disruptions caused by floods and landslides. There are also growing concerns regarding the potential for hoarding and black marketing of essential goods, particularly LPG, as demand increases during the holiday period.