Three sugar mills in Madhesh Province are holding over 10,000 tons of unsold sugar as they struggle to compete with cheaper smuggled sugar from India. Illegal imports are being supplied to retailers at around Rs 67 per kg—far lower than the domestic price of Rs 80 per kg—sharply reducing local sales. Reliance Sugar Mill (Bara), Everest Sugar Mill (Mahottari), and Indu Shankar Sugar Mill (Sarlahi) together have a stockpile of about 10,300 tons. Producers estimate that up to 40,000 tons of sugar enter Nepal illegally each year, causing significant revenue losses.
