Sugar Prices Surge despite Government Cap

Sabika Shrestha/ Pawan Barsha

Sugar is the essence of Hindu festivities but the commodity is becoming uncountably expensive in Nepali market.  

The government says there is no shortage of sugar in the market and the consumers are getting as per their demand.

Then why the price is higher than that fixed by the government? 

Government has announced that the price of sugar will not go above Rs.110 per kilogram until Chhath festival.

Sugar producers and traders have also assured the government that they will not increase the price accordingly.

When consumers buy sugar from the market, they have no choice but to pay the price set by the traders.

As Dashain festival approaches, consumers say they are paying from Rs.120 to 150 per kilogram for sugar.

As shopping for the festival season gradually increases, consumers have complained that traders are taking advantage of the occasion to arbitrarily raise the price.

Until a month ago, sugar was available at Rs.95 per kilogram.

Retail traders say they are selling sugar at higher prices because the price has already increased at the wholesale level.

Some retail traders have even said that they are unable to obtain sugar from the market.

According to the government, private companies and the Salt Trading Corporation have sufficient stocks of sugar to meet demand during Dashain, Tihar and Chhath.

The government maintains that those found hiking the price will be punished.

According to the government, sugar producers currently have around 25,000 metric tons of sugar in stock, while the government has another 15,000 metric tons.

To prevent shortage during the festival season, the government is importing 25,000 metric tons of sugar from India.

Of this amount, the government has said that 12,000 metric tons will enter Nepal within days.

Nepal consumes around 280,000 metric tons of sugar annually.

During major festivals such as Dashain, Tihar and Chhath, monthly sugar consumption is estimated to reach 20,000 to 30,000 metric tons.

Nepal produces around 250,000 metric tons of sugar annually.