Two state-owned suppliers in Nepal have reduced their import of subsidized sugar from India to 5,650 tonnes, believing this amount will suffice for the upcoming festivals.
The Nepalese government has allowed two supply entities, the Salt Trading Corporation and the Food Management and Trading Company, to import a total of 30,000 tonnes of sugar—15,000 tonnes each—through a government-to-government agreement.
During a Cabinet meeting on September 9, the companies were granted permission to import sugar while having 50 per cent of the customs duty waived, due to concerns about potential shortages during the festival season.
Though the companies did not provide a clear explanation for the reduced imports, they stated that the market has sufficient sugar.
As per the media reports in Nepal, some traders reported that the market is oversaturated with smuggled goods, including sugar, which has alleviated any panic among consumers.
“We are bringing in 5,500 tonnes of sugar from India and are working to ensure it arrives before Fulpati on October 10,” said Kumar Rajbhandari, information officer at the Salt Trading Corporation.
He noted that the price will be determined upon arrival based on the rates set by the Indian supplier.
With India limiting sugar exports, the state-owned entity has sought government assistance for imports. “The Indian government has agreed to provide us sugar under the government-to-government arrangement,” Rajbhandari explained.
He expressed confidence that 5,500 tonnes would be adequate for festive needs, assuring that the corporation would supply high-quality sugar.
Rajbhandari indicated there is currently no sugar shortage, with the Salt Trading Corporation distributing up to 6 kg to each household. Retail prices for sugar are around Rs120 per kg, with expectations of further increases as private traders report depleted stocks.
During last year’s festivities, the government implemented a quota system that restricted each family to purchasing 2 kg at a time from Salt Trading depots.
Sharmila Neupane Subedi, the information officer for the Food Management and Trading Company, mentioned that despite having a 15,000-tonne import quota, they are initially bringing in only 150 tonnes.
“The remaining sugar will be imported in phases as needed, and we anticipate its arrival within a few days,” she added.
Sugar is being imported through the government-to-government agreement with National Cooperative Exports Limited in India, which acts as a cooperative export umbrella organization.
