June 20:  Industrialists have warned that there is a high possibility of shortage of sugar in the market from August. They said that the possibility of shortage is high due to the ban on sugar exports by India. According to the industrialists, they now have only about 30,000 metric tons of sugar in stock.

This year, the Nepal’s domestic sugar industry produced 131,000 metric tons of sugar. According to the Nepal Sugar Producers Association, so far, 110,000 tons have been consumed and only 30,000 tons remain now.

As per the association, even the Salt Trading Corporation – the government body responsible for importing and trading sugar at subsidized rate – has no stock left and if India does not resume its exports, there will be a shortage of sugar in the market.

The General Secretary of the association, Raj Kumar Agrawal said that while there is no immediate shortage of sugar, the possibility is increasing and will have its impacts from the second week of August.

“Nepal consumes 250,000 metric tons of sugar annually. However, when the domestic production is only 131,000 tons, we are in need of 119,000 tons of sugar. It is difficult for traders to import due to Indian restrictions. Therefore, it is almost a hundred percent certain that there will be a shortage,” said Agrawal.

The price went up by Rs 20 in two weeks

The price of sugar in Nepal went up by Rs 20 per kg within the two weeks after India imposed a ban on exports of sugar. The Indian government halted exports on May 1, citing the possibility of surge in sugar prices in the domestic market. According to the Nepal Retail Trade Association, the price of sugar in Nepal started rising as soon as India imposed the ban.

According to Amul Kaji Tuladhar, general secretary of the association, the retail price of sugar, which was Rs 90 per kg two weeks ago, now costs Rs 110. He said, “After the industrialists started selling sugar at higher prices, we also fixed the price according to our own cost.”

Agarwal, general secretary of the association, claimed that the price naturally went up as the cost surged along with the transportation fare. Last Thursday, the Commerce, Supplies and Consumer Protection Department had called traders, industrialists and stakeholders and sought clarification on the reason for the rise in sugar prices.