Delay in procuring sugar from Brazil and Thailand has created shortage of sugar in the market, prompting sugar producers to impose cartel on sugar supplies and pricing. Price of sugar has doubled to Rs 90 per kg over the year. [break]
“Responding to our call, sugar producers have agreed to supply 5,000 tons of sugar to the government. We will soon initiate the procurement process through National Trading Limited and Salt Trading Corporation,” Ganesh Dhakal, joint secretary at the Ministry of Commerce and Supplies (MoCS), told myrepublica.com on Sunday.
Dhakal said the government will buy the sugar at factory gate price of Rs 65 per kg, excluding VAT and transportation cost. “We will immediately initiate the process. After the procurement, people will get sugar at around Rs 80 per kg through government´s outlets,” said Dhakal.
The government had announced to import 50,000 tons of sugar from India, Brazil and Thailand to ease the worsening supplies due to decline in domestic sugar production. However, the government has managed to import just 2,500 tons from India so far. The government had planned to import 5,000 tons from India, 25,000 tons from Brazil and 12,500 tons from Thailand at one percent customs duty.
The MoCS has also recommended the Finance Ministry to lower the customs to one percent from 15 percent in sugar imports for private importers as well.
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