Sugar prices up 15%; new stocks to come only a week later

KATHAMNDU, Dec 14: Sugar prices have gone up by around 15 percent over the last week due to short supply of the commodity triggered by a dispute between sugarcane farmers and sugar mills. Hoarding of the commodity by greedy businessmen is also being suspected.



A snap market survey conducted by Republica showed sugar is selling between Rs 78 and Rs 80 per kg from Rs 70 to Rs 72 a kg a week ago.[break]



Retail shop owners like Suka Aaham Singh Bariya blamed major suppliers like National Trading Ltd (NTL) and Salt Trading Corporation (STC) for the price hike as he claimed these state-controlled companies are not releasing adequate quantity of sugar in the market. “These companies have sugar in stock but they are hoarding it,” Bariya, who has a retail shop in Koteshwor, claimed.



However, NTL and STC officials refuted such claims and asserted they are not releasing sugar because they have no stock. According to Bhagawati Rana, Divisional Manager of STC, sugar started disappearing from the market after farmers stopped supplying sugarcane demanding higher rates for the produce. Following this, almost all of the nine sugar mills operating in the country stopped production, as sugarcane is an essential raw material for sugar.



“But now this problem has been resolved and farmers have started supplying sugarcane to sugar mills,” Rana said, expressing hope that supply situation will normalize within a week. Kapil Mani Mainali, president of the Federation of Nepal Sugarcane Producers, confirmed that farmers have started supplying sugarcane to sugar mills.



Following this, Mahalaxmi Sugar Mill of Kapilvastu, and Bagamati Sugar Mill and Indira Sugar Mill of Nawalparsai have already resumed production. Similarly, Everest Sugar Mill of Mahottari and Indu Shankar Sugar Mill of Sarlahi are planning to start production within two days, while Shree Ram Sugar Mill of Rautahat, Eastern Sugar Mill of Sunsari, Lumbini Sugar Mill of Lumbini, Bara Shreepur Sugar Mill of Bara will resume production within three days.



“The supplies from these mills will start hitting the market next week, which will bring the situation back to normal,” Mainali said.



The annual demand of sugar in the country is 140,000 metric tons, of which around 120,000 metric tons is produced in the country. The rest is imported from India.

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