KATHMANDU, June 11: Salt Trading Corporation (STC) has got the go-ahead to import 30,000 tons of sugar.
Officials of STC say sugar will start arriving into Nepal from mid-July. The government has set customs duty at 1 percent for import of 30,000 tons, down from the existing 15 percent.
“The import will help to stabilize market price of sugar and ensure that the commodity is not in short supply during upcoming major festivals,” Urmila Shrestha, general manager of STC, said.
Price of sugar has increased by around IRs 10 in the Indian market.
According to Shrestha, STC published a notice, seeking Expression of Interest from Indian sugar exporters, in Times of India daily newspaper on Wednesday.
“We got the permission last week only,” Shrestha said, adding, “We have already started the process for importing 30,000 tons.”
STC's sugar stock is fast depleting has it hasn't imported sugar in the past two years. In 2013/14, it had imported 24,000 tons.
Officials say the process to import sugar was started before last year's earthquake. But it was halted as the government's priorities changed after the catastrophe.
Price of sugar has increased by Rs 7-8 per kg in recent days. Sugar is currently being retailed at Rs 72 per kg.
Domestic sugar production was encouraging in past few years. Buoyed by rise in production, sugar products had even claimed that they were close to becoming self-reliant in sugar. But conservative estimates show sugar production will fall by 40,000 tons to 120,000 tons this year.
Sugar factories were bent on lower minimum support price of sugarcane in the past two years, arguing that price of sugar was falling in the international market. They are yet to pay farmers for the sugarcane purchase in the past year.
The government lowered minimum support price of sugarcane to Rs 448 per quintal from Rs 481 per quintal three years before. This affected farmers as cost of production has been increasing due to soaring input prices.
At present, 12 sugar mills are in operation in different Tarai districts.
Govt allows STC and FMTC to import sugar on duty waiver
INDIA MULLS 25% TAX ON SUGAR EXPORTS
Meanwhile, the Indian government is planning to levy 25 percent tax on sugar to stabilize put local prices under control.
STC officials fear such a decision will make sugar dearer in the domestic market as India is the leading supplier of sugar to Nepal due to its proximity.
Ram Vilash Paswan, India's Union Minister of Food & Public Distribution and Consumer Affairs, tweeted on Thursday about the plan. "There is an increasing trend in the price of sugar in the international market. Traders may increase the export of sugar to make profit,” Paswan posted on Twitter. He also tweeted that his ministry's has proposed levying 25 percent tax on sugar exports.
