The likelihood of importing 30,000 metric tons of sugar before Dashain appears slim, even with customs concessions. Due to the delay in government approval for two state-owned companies to import sugar with a 50 percent customs exemption, the chances of completing the import before Dashain have diminished.
The government has authorized the Salt Trading Corporation and the Food Management and Trading Company Limited to import 30,000 metric tons of sugar with a 50 percent customs discount in order to curb black market activities and price hikes during the festive season. A meeting of the Council of Ministers on Monday granted this approval. Both companies are now set to issue tender notices with the aim to expedite sugar imports before Dashain.
Kumar Rajbhandari, deputy general manager of the Salt Trading Corporation, stated that they plan to issue a 12-day tender notice to facilitate the import. “We are trying to bring the sugar before Dashain, but with only three weeks remaining, there is no certainty,” he said.
According to Rajbhandari, the price of sugar in the international market has dropped. Last year, the price was over $850 per metric ton, while now it has fallen to $550, with a possibility of reaching $500. However, Rajbhandari cautioned that despite the declining price, it remains uncertain whether the sugar can be imported on time.
Meanwhile, in the domestic market, sugar prices are hovering above Rs 120 per kg, while the Salt Trading Corporation is selling it at Rs 107 per kg.
Last year, government companies failed to import any sugar during the festive season due to the delay in getting approval to import sugar under customs exemption, causing sugar prices to spike above Rs 150 per kg. Rajbhandari noted that despite efforts to manage prices this year, delays in government approval have hampered the process once again.
India has banned sugar exports, but Nepal plans to import from a quota allocated last year. Although India has stopped sugar exports for an extended period, it granted Nepal a quota of 25,000 metric tons last year. However, Nepal did not fully utilize this quota. The Ministry of Industry, Commerce, and Supplies had assigned 10 private companies to import 19,000 metric tons of sugar, but they declined due to high costs.
After these companies failed, the government tasked seven private firms with importing sugar for household use, but they too were unsuccessful. Now, the responsibility has been handed over to two state-owned companies to import the remaining quota.
An official from the department explained that no Nepali private companies were willing to import sugar as they have only seven days to finalize an agreement with the Indian sugar company after receiving the import permit.
Amulkaji Tuladhar, secretary general of the Retail Trade Association, criticized the government's failure to import sugar, noting that big businesses are now taking advantage of the situation to hike prices. He warned that if duty-free sugar is not available and state-owned companies lack supply, there will be an increased risk of blackmarketing of sugar during the festive season.
