Demand of Sugar Twice its Production

By Bishnu Pandey, Kathmandu, Jan 6: Demand for sugar is getting higher than domestic production capacity

Out of the demand of around 2 lakhs 80 thousand metric ton sugar, Nepal produces around 1 lakhs 29 thousand metric tons. Currently, Nepal is importing around1 lakhs 51 thousand metric ton from abroad especially from India. 

 According to the assistant spokesperson of Ministry of Industry Commerce and Supply Urmila KC, sugar producers are reluctant to sell sugar to government. Hence, supply gets shorten. So, Nepal reached in the situation to importing from abroad.

She said that not all the sugar producers participates in government tender process. Otherwise supply could have been enhanced further. 

She said that 2/3 of the demand is being met through the process of tender.

According to the Department Manager of Salt Trading Corporation Limited Brajesh Kumar Jha, sugar are being imported from abroad as demand is rising higher than domestic production capacity.

He informed that government opens international/national tender to import. Currently, Salt Trading Corporation’s tender process is halted for some times as the Ministry of Industry, Commerce and Supply has not yet approved its proposal to purchase sugar.

However, Salt Trading Corporation has no authority of tender. 

According to Jha, corporation could play role to tame the price of sugar in the market if it has stock.

Price of sugar soaring high as corporation has no stock. 

Corporation will purchase sugar as soon as Ministry of finance approve the proposal. 

According to secretary of Federation of Sugar Industry Diwakarraj Pandey government is ignorant to problem face by entrepreneurs. Therefore, entrepreneurs are not interested in participating in government’s tender process.