March 20, 2017 11:40 PM NPT
Retail price to be fixed based on the team's recommendation
KATHMANDU, March 20: The government has dispatched a team to study sugar production cost in different parts of the country.
According to government officials privy to the issue, the team will calculate retail price of sugar based on cost of production of different sugar mills.
Price of sugar has soared above Rs 90 per kg in the retail market. Alarmed by the price hike, consumer rights bodies had requested the government to step in and control the market prices.
The team led by Niraj Paudel, director of Department of Supply Management and Protection of Consumers, have visited four sugar mills -- Reliance Sugar Mills, Shree Ram, Indu Shankar Sugar Mills and Everest Sugar Mills -- till Monday. The team, which also comprises of a chartered accountant, will analyze sugar production cost, including the price paid to sugarcane farmers.
Laxman Shrestha, the spokesperson for the department, said that the committee will submit its report to Minister for Supplies Romi Gauchan later this week.
“The committee will take into account sugarcane price, sugar production cost as well as price of sugar in the international market before recommending price range for the retail market,” added Shrestha.
Sugar mills have paid sugarcane farmers only Rs 531 per quintal, up from Rs 448 per quintal of last year. There are eight sugar mills in the country.