KATHMANDU, SEPTEMBER 7

Consumers who visit the government's fair price shops that are being brought into operation from September 17 will be in for a bit of a bitter surprise this year. The outlets will not be selling sugar.

Every year, the Ministry of Industry, Commerce, and Supply operates fair price shops that offer essential goods at discounted price.

Urmila KC, undersecretary at the MoICS, told The Himalayan Times that the shops would not be selling sugar this year as the state-owned enterprises, Food Management and Trade Company Ltd and Salt Trading Corporation, have run out of sugar stock due to export restrictions by India.

'Only private traders will sell and distribute sugar this festive season,' KC said.

According to KC, local production of sugar is insufficient to meet the market demand. 'Altogether 280,000 metric tonnes of sugar is consumed annually in Nepal, whereas domestic production stood at only 131,000 tonnes this year, which could fulfil the demand for just six months,' she said. 'Hence, we've to depend on import of sugar, but India's partial export ban has affected the supply chain in Nepal.'

India - the world's biggest producer of sugar and the second largest exporter after Brazil - had announced that it would only allow sale of up to 10 million tonnes of sugar in international markets till October 31 to maintain domestic availability and price stability, the Economic Times had reported.

Meanwhile, consumer activists criticised the government's decision not to offer sugar at fair price, terming the move irresponsible and in favour of sugar traders.

'Traders have been hiking the price of sugar citing tight supply. It was available at Rs 72 per kg last Dashain and its price has gone up to Rs 110 a kg now,' said President of National Consumers Forum Prem Lal Maharjan. The proposal of STC to import 30,000 tonnes of sugar for this festive season was ignored by the MoICS, which clearly points at government apathy to the woes of the common people.

He claimed that the government's inability to ensure smooth supply of sugar had promoted the black market, where traders and public in the bordering towns are importing it via illegal channels.

Until nine years ago, Nepal used to produce 280,000 tonnes of sugar annually.

At that time, a single mill used to produce up to 100,000 tonnes of sugar.

However, sugar production has been affected as sugarcane cultivation continues to decline.

Meanwhile, 75 fair price shops - 44 run by FMTCL, seven by Dairy Development Corporation, and 24 by STC - that will be operated across the country will offer rice, pulses, salt, beans, oil, live goats, and mountain goats at subsidised rates.

According to the ministry, consumers will be able to get a discount of seven rupees per kg on rice, pulses, flour, beaten rice, and oil. Likewise, fair price shops will offer discounts worth Rs 10 per kg on live goats and mountain goats, Rs 10 per kg on beans from Karnali, two rupees per kg on salt, and Rs 30 per litre on DDC ghee.

Considering the pandemic situation, this year also, the government has arranged online shopping for consumers. Using the website of concerned firms, consumers can order their groceries and can get them home delivered.

Fair price shops are slated to run till November 1.

A version of this article appears in the print on September 8, 2022 of The Himalayan Times.