Confectioneries to raise price, lower output

POKHARA, Jan 24: Citing rising cost of production with skyrocketing sugar prices, confectioneries here are preparing to curtail production and raise prices of their products.



Sugar price has doubled over a year to Rs 90 per kg in domestic market. [break]



Pokhara-based confectioneries such as Jayma Laxmi, Jaya Confectionery and Sujal Foods say they have no option but to scale down production volume due to soaring price of sugar -- the major component of confectionery products. These confectioneries are manufacturing popular chocolate brands like Chocó Fun, Lacto Fun, Sujal Gum, Love Birds, Mango Tart and YoYo. Those products are also being exported to India and China.



“We aren´t in a position to maintain regular production volume on the back of mounting sugar prices. So, we are curtailing our production by 25 to 30 percent,” said Niranjan Shrestha, executive director of Sujal Foods. “Shortage of sugar in the market has also hampered the production of chocolates.”



He also said there was no alternative to raising prices to control rising loss due to soaring production cost.



“We are preparing to increase price of chocolates by around 25 percent soon,” said Shrestha.

Related story

Oil dips as U.S. crude production hits record, Asia factory out...