Nepal to Import 20,000 Metric Tonnes of Sugar Prior Festive Buzz

Nepal is set to import 20,000 metric tonnes (MT) of sugar from India ahead of the festive season, meeting at least 70% of the Himalayan country's domestic annual demand of approximately 3,00,000 MT.

In light of the upcoming festivals, such as Vijaya Dashami and Deepawali, the Ministry of Industry, Commerce, and Supplies has requested that the Finance Ministry waive customs duties on 60,000 MT of sugar imported to meet local demand. However, for the time being, the Finance Ministry has granted permission to import only 20,000 MT.

According to Dhaniram Sharma, a spokesperson for the Finance Ministry, the Ministry has given a 50% discount on customs duty, which is 15% less than the previously imposed 30% customs duty.

Two companies, Salt Trading Corporation (STC) and Food Management and Trading Company, would import 10,000 MT of sugar each for the upcoming festival season, according to Sharma. However, the divisional manager of STC Brajesh Jha said that it had asked the government for permission to import 50,000 MT of sugar.

According to Jha, Nepal's domestic sugar demand is 3,00,000 MT, and the country needs to import a large amount of sugar, primarily from India. Nepal has 12 sugar factories that produce approximately 1,000,000 MT of sugar.

Nepal, according to estimates, imports at least 70% of its sugar from India. Furthermore, thousands of tonnes of sugar are brought in illegally without paying customs duty. Sugar is available in Kathmandu's black market for Nepali Rupees 100 to 125 per kg, whereas it costs around Rs 40 - 50 in India.