Sugar tastes bitter as prices soar

After the Indian government banned the export of sugar, its impact has been felt in Nepal.

The government of India had imposed a ban on the export of sugar from June 1 to balance the price of sugar after its price soared in India.

The price of sugar has gone up by Rs. 10 per kg in Nepal in the last two weeks after India imposed the ban, said Amul Kaji Tuladhar, general secretary at the Nepal Retailer Association.

He said that the prices in the market have been gradually increasing since the Indian government banned sugar export.

According to him, until two weeks ago, retailers had sold sugar to consumers at Rs. 90 to Rs. 95 per kg. At that time, the industrialists had provided sugar at Rs. 88 per kg to retailers for sale. At present, the price has gone up by Rs. 10 per kg as it has been increased by the industrialists themselves.

He said that even though there is enough sugar in the market now, the price is still rising.

“There is no problem in sugar distribution. However, retailers are compelled to sell sugar at Rs. 100 to Rs. 105 per kg after its price has been increased by the wholesalers,” he said.

He said that the purchase price of sugar for retailers reached Rs. 96 and retailers are selling a kg of sugar from Rs. 100 to Rs. 105 by adding transportation cost based on distance.

Tuladhar said that some retailers might be selling a kg of sugar at Rs. 110.

He said that black market has started in the name of India’s ban as the market has risen by Rs. 10 per kg in two weeks.

“The wholesalers have increased the price of sugar in stock, which is unnatural,” he told The Rising Nepal.

Even in the past, when the stock of sugar supplied by the government agencies, including Salt Trading Corporation, was reduced, there was a tendency on part of private industrialists to increase the price through black marketing and cartel.

As a result, consumers are forced to pay higher prices every year.

No stock of sugar with STC

Brajesh Kumar Jha, Divisional Manager, Salt Trading Corporation, informed that STC does not have any sugar for sale at present.

“For the past two weeks, we have stopped selling sugar directly to consumers from STC shops,” he said. After the stock dropped, STC stopped selling sugar to wholesalers about a year ago,” he said.

Earlier, STC was being sold at a retail price of 2 kg per person.

Although the Ministry of Industry, Commerce and Supplies proposed a year ago to allow STC to import sugar, the government has not allowed STC to purchase additional sugar.

Government-owned enterprises, particularly STC, have been allowed to import sugar at concessional rates to intervene in the market.

Source : TRN,