Sugar price soars despite abundance in sugarcane crushing season
Sugar prices have maintained an upward trend at retail levels despite the ongoing sugarcane crushing
season, which consumer rights activists say has been inflated artificially, allowing mills to make
exorbitant profits.
The retail price of sugar has increased by Rs15 per kg to Rs100 per kg in the market.
The sugarcane crushing season in Nepal’s southern Tarai plains generally starts in mid-October or
November and continues till mid-April.
“The retail price should not be more than Rs85 per kg, but it costs Rs100 kg in the Kathmandu Valley.
The domestic sugar producers have hiked the price on their own,” said Prem Lal Maharjan, president
of the National Consumer Forum.
Ignoring the existing laws, the sugar producers have increased the price, but the government is least
bothered to intervene in the market, he said, adding that the state seems to protect the sugar mills,
said Maharjan. “Such an act is against good governance.”
The consumer forum, on February 8, had written to the government to store at least 50,000 tonnes of
sugar to prevent the potential shortage.
“We have been assured by the industry minister that they have taken the issue seriously,” Maharjan
said.
Last year, the Finance Ministry ignored the call of the rights activists that failure to import sugar could
cause a shortage in the market and eventually a price hike.
Traders say sugar smuggling has become rampant from the southern neighbor, due to the price
differences.
“Sugar mills are selling sugar at Rs93 per kg in wholesale,” according to retailers.
Consumer rights activists have raised concerns with the government regarding the unjustified price
hike by domestic sugar mills under the pretext of maintaining price uniformity.
To control inappropriate business activities and to prevent the shortage and price hike, the activists
had earlier advised the government to buy at least 50,000 tonnes of sugar and store them.
The current hike shows the failure of the government to maintain stock for market intervention, said
Maharjan.
“There is sufficient availability of sugar during this time due to the ongoing sugar-crushing season,”
said Maharjan. He said that sugar producers take incentives and subsidies from the government but
give troubles to farmers and customers
Source Link: https://kathmandupost.com/money/2024/02/19/sugar-price-soars-despite-abundance-in-sugarcane-crushing-season
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