KATHMANDU, Oct 14: It has been revealed that four sugar mills had colluded while participating in a bid to supply sugar to Salt Trading Corporation (STC).

STC had invited bids from sugar producers to supply 20,000 tons of sugar produced in the country. While submitting their bids in March, Reliance Sugar Mill, Indu Shankar Sugar Mill, Everest Sugar Mill had quoted equal price of Rs 64 per kg, while Eastern Sugar Mill had quoted almost equal price or Rs 63.75. 

The price quoted by these companies was higher than their respective factory gate prices. Clearly, their intention was not to sell sugar to STC, a source privy to the issue told Republica.

STC Spokesperson Kumar Rajbhandari confirmed that four mills had quoted more or less the same price, even though they were selling sugar at lower price. 

Their factory gate price was at least Rs 3 per kg lower than the price quoted to STC.

“We had expected to receive lower price than their factory gate price as we were buying huge quantity. But we did not get good rates,” added Rajbhandari.

STC had received the bids in the second attempt after getting no response from sugar mills in the first bidding held in January. 

After being cold-shouldered by sugar mills, STC decided to purchase sugar from India at $435 per ton. But continuous decline in sugar price in the international market thereafter made sugar purchased by STC costlier.

 
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