Consumers in Capital Valley stressed over sugar shortage ahead of Tihar

By Laxman Kafle,Kathmandu, Nov. 5: There is a shortage of sugar in the market on the eve of Tihar festival, which is a time of high demand for sugar to make sweets.

 A few days ago, the government had claimed that there would be no shortage of sugar, but there is a shortage of sugar in the market.

 There is now a shortage of sugar in the market due to the traders’ hiding of sugar they have in stock. Sugar is not available in most shops inside the Kathmandu Valley now. According to the consumer, they said that they have to pay more than Rs. 150 per kg even if they get sugar from a shop.

 The consumers have complained that they are not getting sugar in fair price shops that are run for the festivals.

 Geeta Shrestha, a homemaker in Bhola Dhoka, Lalitpur Ward No. 8, said that she had been crushing candy sugar (Mishri) to use instead of crystalline sugar for the past two weeks.

 “I looked in all the shops in the area and also asked my neighbours but did not find any sugar. In the end, I bought two packets of candy sugar from Bhatbhateni and have been using it for things like tea.”

 Due to lack of sugar in the market and high price, there is a long queue at the Salt Trading Corporation (STC) shop to buy sugar.

 The STC is selling two kilograms per person at the rate of Rs. 97 per kilogram from its sales centres.

About 30,000 tonnes sugar required in Tihar

Brajesh Kumar Jha, divisional manager of STC, said that flow of consumers at the STC outlets to get sugar is high after Dashain.

“Due to the heavy price increase and shortage of sugar in the shops, the pressure of consumers has increased at STC outlets to buy sugar at cheaper rates over the days. So far, we are providing sugar at the rate of 2 kgs per person to the consumers who come to our outlets,” he said.

Likewise, the stock of sugar at the Corporation is also low.

The STC started to collect sugar from Everest Sugar Mills as per the government recommendation to resolve the shortage from Friday. 

It had received around 45 tonnes of sugar from the Mills on Friday and will start distribution to retailers from Sunday/Monday.

However, the price of sugar received from Everest Sugar Mills will be higher than the existing sugar being sold by the STC from its outlets, said the Corporation.

“After searching for sugar in every possible store in the vicinity and beyond, I bought a packet of raw sugar, which is double the price of white sugar but not as tasty,” said Aditya Bhandari, a student in Tinkune, Kathmandu.

The annual demand for sugar is about 300,000 tonnes. But the consumption of sugar will be at around 30,000 tonnes during Tihar festival, he said.

 A maximum of 140,000 tonnes of sugar is produced annually within the country. Annually, there is a shortfall of 160,000 tonnes of sugar from domestic production.

Artificial shortage of sugar

 “It is not unusual for the price of sugar to increase as the festivals are approaching this year. Every year, during festivals like Tihar, when the demand for sugar is high, the wholesalers increase the price of sugar by showing this or that reason,” said Pabitra Bajracharya, president at the Retail Trade Association.

 He said artificial shortage of sugar was created to earn profit at a time when the demand for sugar was increasing.

 “Why is there a shortage of sugar in the market even though the producers and wholesalers have said that they are ready to provide sugar to the retailers? Therefore, it is a game of industrialists who make profit by creating an artificial shortage of sugar and increasing the price,” he said.

 According to him, on the recommendation of the government, sugar producers provided around 225 quintals of sugar to the retail trade association for sale in the last two days to sell at the rate of Rs. 117 per kg.

 “Around 225 quintals of sugar is quite low in such a big market of Kathmandu Valley where thousands of retailers and millions of consumers. So, this is a remedy for industrialists to increase prices as they make additional profit of Rs. 30 per kg while providing sugar to retailers at Rs. 115 per kg,” he said.

 Earlier, the government had mobilised security for searching for sugar in the market.

 Similarly, the government has started the process to bring sugar from India through the fast track targeting the upcoming Tihar festival.

 According to the Ministry of Industry, Commerce and Supplies, India has agreed to provide 25,000 tonnes of sugar to Nepal.

A few days ago, the government requested the government of India to provide sugar to Nepal through the fast track targeting the upcoming Tihar festival.

 Out of 25,000 tonnes of sugar to be purchased from India, 20,000 tonnes of sugar will be imported in customs exempted which will be brought before Tihar.

Similarly, the remaining 5,000 tonnes of sugar will be brought after Tihar without customs exemption, said the Ministry.