Nepal may face a potential sugar shortage ahead of the year’s main festival season, Dashain, due to a slow start by the two government firms tasked with importing the sweetener, reported Kathmandu Post.
Salt Trading Corporation (STC) has invited international bids for the supply of 10,000 tonnes of white crystal cane sugar, with a deadline of October 6. Currently, the corporation has only 400 tonnes of sugar in its warehouses, which will be depleted in less than a week. Officials anticipate a minimum two-week timeframe for sugar to arrive, considering the complete procedural requirements, including shipping.
This year, Ghatasthapana, marking the first day of Dashain, falls on October 15.
Meanwhile, the Food Management and Trading Company, another government entity, called for bids on September 27 for the supply of 10,000 tonnes of sugar, with proposal submissions accepted until November 17. Notably, this company has no sugar in its stock due to delays caused by pending approval from the Finance Ministry.
Sharmila Neupane, the information officer at the Food Management and Trading Company, attributed the delay to the ministry’s approval, which was received on September 15. She added, “It took us a few days to prepare for the global call for tenders.”
Private companies may also face difficulties in importing sugar this year, as India is expected to ban sugar mill exports starting in October. This is happening for the first time in seven years due to reduced cane yields caused by insufficient rainfall. India had allowed mills to export a record 11.1 million tonnes of sugar in the previous season but limited exports to 6.1 million tonnes until September 30 this year.
To mitigate the impending shortage, the Finance Ministry approved the import of 20,000 tonnes of sugar for the festive season on September 13.
