Nepal may experience a sugar shortage during the upcoming festival season due to delays by the two government supply agencies responsible for importing the sweetener, reported The Kathmandu Post.
Last year, Nepal faced a sugar shortage during the festive season, causing prices to rise from Rs90 to Rs160 per kilogram. With sugar scarce in the market, consumers had to wait in long lines at Salt Trading and the Food Management and Trading Corporation. The corporation had also imposed a quota system, limiting purchases to just two kilograms per person.
On September 9, the Cabinet allowed the Salt Trading Corporation and the Food Management and Trading Company to import 30,000 tonnes of sugar, with each agency handling 15,000 tonnes. Additionally, the Cabinet decided to reduce the customs duty by 50 percent.
As per the media report, Sharmila Neupane Subedi, information officer at the Food Management and Trading Company, noted that importing sugar through a global tender could delay shipments as the festive season approaches. To address this, the company is exploring an alternative option: a government-to-government (G2G) arrangement, which could expedite the process. Subedi warned that if the G2G approach fails, the chances of securing enough sugar for Dashain, Tihar, and Chhath—festivals with heightened sugar demand—are slim. The supply firms plan to import sugar in phases, with the quantity for the initial phase through the G2G arrangement yet to be determined. Subsequent imports will occur through competitive bidding.
Subedi mentioned that the CEO of the Food Management and Trading Company has initiated discussions with India’s National Cooperative Exports Limited regarding the G2G model. Although the government has granted a 50 percent customs duty waiver, the final price will be based on rates set by the Indian suppliers.
Kumar Rajbhandari, information officer at Salt Trading Corporation, indicated that the company began the tender process for sugar importation two weeks ago. If Indian suppliers can be secured, sugar may arrive in time for the festivals. Rajbhandari assured that efforts are being made to ensure timely arrival and that the company is ready to finalize agreements within a week of selecting a supplier.
