Fiscal Nepal
First Business News Portal in English from Nepal
KATHMANDU: Traders have resorted to artificially raising the price of sugar in the market as supply has declined due to the COVID-19 pandemic.
Due to the coronavirus Salt Trading Corporation and Food Management and Trade Company have not been able to supply sugar in the market and they have very limited stock at the moment. Taking advantage of this situation, local traders are increasing the price of sugar.
Salt Trading is currently selling sugar at Rs 73 per kg, however, the current market price of sugar is above Rs 90 per kg. As per the Department Commerce, Supply and Consumer Protection (DoCSCP), Salt Trading has been providing sugar at Rs 70 to Rs 71 per kg to dealers while it is selling sugar at Rs 73 per kg to consumers.
However, DoCSCP has found that local traders as well as online firms have been selling sugar at Rs 85 per kg to Rs 93 per kg.
According to Raj Kumar Shrestha, president of Nepal Retailers Association, the current stock of sugar is declining gradually due to which its price has increased in the market. Currently, Salt Trading has less than 1,000 tonnes of sugar in its stock and the government has begun the process to import sugar, he said.
The government has given permission to Salt Trading Corporation and Food Management and Trade Company to import 30,000 tonnes of sugar, of which Salt Trading will import 20,000 tonnes while the latter will bring 10,000 tonnes of sugar.
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