KATHMANDU, Feb 22: In an attempt to rein in the skyrocketing price of sugar, the government is preparing to import 50,000 tons of sugar from India, said a senior government official.
“We can’t fulfill ever increasing demand for sugar given the production volume in the country. So, we are mulling importing sugar from India to improve the supply situation,” Ganesh Dhakal, joint secretary at the Ministry of Commerce and Supplies, told myrepublica.com.
Supply Division of the ministry has recommended importing sugar amid shrinking stocks in the country.
Dhakal claimed that that rising sugar prices in the country would come down with the increased supply. The price of sugar has climbed to Rs 50 per kg from Rs 42 during the period of one month.
“Once we decide to import, we will request the Ministry of Finance for customs concessions which will cut sugar prices,” Dhakal, who is also the chief of Supply Division at the ministry, said.
In earlier imports, the government slashed customs duty for sugar from 25 percent to 10 percent.
Dhakal said some major traders were taking advantage of the supply deficit to push up the price unnecessarily,” Dhakal said.
Nepal consumes 110,000 tons of sugar per year while Nepal produces only about 50,000 tons per year.
The government has already decided to import 40,000 tons of sugar considering the huge demand during festivals, especially Dashain and Tihar.
The government had decided to allow National Trading Ltd and Salt Trading Corporation to import 10,000 tons and 30,000 tons of sugar respectively.
“Of the total 40,000 tons, some 22,000 tons have already been imported and remaining 18,000 tons is in the pipeline,” said Dhakal.
Meanwhile, the government has requested to wholesalers to make public the price of major commodities including sugar, at least in an interval of 15 days to maintain transparency in market prices.
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“We can’t fulfill ever increasing demand for sugar given the production volume in the country. So, we are mulling importing sugar from India to improve the supply situation,” Ganesh Dhakal, joint secretary at the Ministry of Commerce and Supplies, told myrepublica.com.
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