Prior to the holiday season, Nepal is planning to import 20,000 metric tonnes (MT) of sugar from India, which would provide around 3,00,000 MT of the Himalayan nation’s yearly domestic consumption.
The Ministry of Industry, Commerce, and Supplies has requested the Finance Ministry to provide a customs waiver for the import of 60,000 MT of sugar in order to fulfill the local demand for the forthcoming festivals, including Vijaya Dashami and Deepawali. However, for the time being, the Finance Ministry has only approved 20,000 MT of imports.
Dhaniram Sharma, a spokesman for the Finance Ministry, claims that the Ministry has granted a 50% reduction on customs tax, which is 15% less than the 30% customs charge that had previously been levied.
According to Sharma, two businesses, Salt Trading Corporation (STC) and Food Management and Trading Company, will each import 10,000 MT of sugar during the approaching festival season. However, STC’s divisional manager, Brajesh Jha, said that the company had requested authorization from the government to import 50,000 MT of sugar.
Jha estimates that Nepal has to import a sizable amount of sugar, mostly from India, to meet its high local sugar consumption, which is 3,00,000 MT. Around 1,00,000 MT of sugar are produced by 12 sugar mills in Nepal.
At least 70% of the sugar Nepal buys comes from India, according to one estimate. In addition, hundreds of tons of sugar are imported through unlawful means and are not subject to customs duty.
On the illegal market in Kathmandu, sugar is sold for between 100 and 125 Nepali Rupees per kilogram, compared to 40 to 50 Rupees in India.