Himal Press 
KATHMANDU: A shortage of sugar is causing concern among the general public as they gear up for the Dashain festivities. Most stores have run out of their sugar stock. Although Salt Trading Corporation (STC) is distributing two kilograms per family, the supply is too little to make a significant impact in the market.
Dashain, the largest Hindu festival in Nepal, is a time when Nepalis indulge in various delectable treats which drives up the demand for sugar. However, the shortage of sugar due to the government’s inaction has dampened their festive mood.
Nepal’s ten sugar mills produce approximately 120,000 tons of sugar annually. To supplement supply, the government permits state-owned trading companies to import around 100,000 tons. This year, the government didn’t issue permission for sugar imports until two state-owned trading companies – STC and Food Management and Trading Company – ran out of their sugar stock. This caused a shortage of sugar in the market.
A cabinet meeting on August 15 authorized these two companies to import 10,000 tons each. However, due to a lengthy procurement process, they were unable to bring sugar into the country before the Dashain festival.
Sugar industry representatives had requested the government to import 40,000 tons of sugar to bolster supply in the third week of July. In response, the Ministry of Industry, Commerce and Supplies (MoICS) forwarded proposals to import sugar to the finance ministry on August 3 and August 16. The finance ministry, however, delayed its decision on these proposals.
Finally, on September 13, after the market had already begun to face a sugar shortage, the finance ministry gave its consent to import 20,000 tons – half of the quantity sought by the industry ministry.
The delay in granting import permissions by the finance ministry contributed to the shortage, as explained by Gajendra Thakur, the spokesperson for MoICS. “But the sugar availability situation is gradually improving in the market. We distributed 80 quintals to retailers on Thursday alone. The situation will return to normal once we receive a delivery of 20,000 tons of sugar from India.”
