Government to import 30,000 MT sugar
KATHMANDU, MAY 31:
The government has decided to import 30,000 metric tonnes (MT) of sugar to fulfil the increased demand during festivals.
The Cabinet meeting, today, took a decision to provide one per cent customs duty facility to the state owned enterprises — Salt Trading Corporation and National Trading Limited.
“The sugar will be imported for Dashain, Tihar and Chhath,” said spokesperson at the Ministry of Commerce and Supplies Deepak Subedi. According to him, the subsidised sugar will be distributed across the country from September.
The Cabinet did not approve the total amount of imports that the ministry had proposed. The ministry had forwarded a proposal to import 40,000 MT of sugar from the international market.
Last year, the government had imported about 45,000 metric tonnes sugar at one per cent customs duty. The regular customs duty is about 15 per cent.
Due to the adequate import of sugar, there was smooth supply between September and November — during Dashain, Tihar and Chhath — last year. Therefore, the price of sugar had remained at around Rs 70 a kg. In 2011, the price had reached Rs 80 per kg due to short supply during the festive season.
The price of sugar usually goes up between August and November due to high consumption. Sugar consumption rises five-fold in Tihar.
The government has been selling sugar at a lower price during the festive season through Dashain bazaars since the last four years.
The ministry will distribute import licence and quota to the state owned enterprises — Salt Trading Corporation and National Trading Limited — soon.
Nepal has an annual demand of 140,000 metric tonnes of sugar and 60 per cent of it is met through domestic production. Usually, Nepal imports nearly 50,000 tonnes of sugar annually.
Sugar prices are expected not to go up this year in the international market as production will increase by 13 per cent. Sugar production will reach 177.4 million MT in 2012-13, said International Sugar Organisation. Last year, global sugar production was 171.5 million MT.
Source: THT
