Commodity got dearer by Rs 15 per kg in two weeks

Kathmandu, October 1

With the government imposing quantitative restriction on the import of sugar, its price has started to surge in the domestic market since the last few weeks. The commodity which was available at an average of Rs 65 per kg has become dearer by almost Rs 15 to Rs 80 a kg over the last two weeks.

In a bid to limit the excessive supply of cheaper foreign sugar in the domestic market, which has lowered the demand of comparatively costly Nepali sugar, the government on September 17 had fixed an import quota of 100,000 tonnes of sugar for the ongoing fiscal year. This move was intended to facilitate sugar mills to clear their stock and help sugarcane farmers get timely payment for their sugarcane.

However, sugar mill operators have been making brisk business by raising the price of sugar just ahead of the Dashain festival. Similarly, mill operators who had been claiming that they were under pressure to release due payments to farmers following piled up stock of sugar, are still reluctant to clear farmer’s dues despite the demand for domestic sugar having risen notably.

Sugarcane farmers are claiming that sugar mills are yet to release almost Rs two billion dues for their produce so far. Moreover, farmers across the country have started fresh protests demanding quicker release of their pending dues from sugar mills.

“Sugar price has increased in the wholesale market and we do not have any role in the recent increase in sugar price,” informed a Chabahil-based retailer of sugar seeking anonymity.

On the other hand, sugar mill operators are quite reluctant to comment on the issue. “We have been supplying sugar in the market on the basis of

our production cost. Similarly, we are also gradually releasing payments to sugarcane farmers,” said Rajesh Kedia, general secretary of Nepal Sugar Mills Association.

Meanwhile, the government is making no effort to curb the rising price of sugar though it earlier had vowed not to let sugar price go up despite the quantitative restrictions on the import of the product.

Consumer rights activists have said that the recent surge in price of sugar is the result of government’s immature decision to set import quota on

sugar and vested interest of sugar mill operators.

“While sugar mill operators are arbitrarily increasing the price of sugar citing that they are just trying to recoup their cost of production, the government is bowing to the interests and demands of sugar mill operators,” said Madhav Timalsina, president of the Consumer Rights Investigation Forum.

However, Nabaraj Dhakal, spokesperson for the Ministry of Industry, Commerce and Supplies, said that the government will soon check and curb the

artificial rise in price of sugar.