“We pushed for hike in sugar price due to rise in the purchasing price of sugar recently imported from India,” an STC source told myrepublica.com.
The SCT recently imported 2,500 tons sugar from the southern neighbor at one percent customs.
In a bid to intervene price of sugar, which has been galloping due to increasing dominance of private players in sugar trading, in the market, the government has directed state-owned entities to import 50,000 tons sugar. State-owned Salt Trading Corporation (STC) and Nepal Food Corporation (NFC) are importing 25,000 tons and 10,000 tons respectively, while the semi-state-owned National Trading Ltd (NTL) is importing 15,000 tons. The government has decided to lower the customs duty to one percent for the imports. The government has already reduced the customs duty in the import of essential commodities, including sugar, to 15 percent from existing 25 percent.
The STC would possibly take the proposal regarding price hike to the Ministry of Commerce and Supplies for approval on Wednesday, the source added.
Amid fall in sugarcane production and spiraling international prices, domestic market has been facing continued rise in sugar prices in the last few months, pushing up the price to as much as Rs 70 per kg.
The government has directed has been selling some daily commodities, including sugar, from the outlets of STC, NFC and NTL to tame galloping market prices.
According to the Ministry of Agriculture and Co-operatives (MoAC), the production of sugarcane nosedived to 2.48 million tons in 2008/09 from 2.6 million tons recorded a year earlier. The domestic demand of sugar hovers around 150,000 tons, while the domestic production stands at 110,000 tons, according to officials.
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