The sugar shortage is expected to recur as festival season approaches.

Given that the two government supply companies importing the household sweetener started off late, Nepal might experience a shortage of sugar during the forthcoming festival season.

During the holiday season last year, sugar became scarce in Nepal and went from Rs90 to Rs160 per kg. Customers had to wait in line for extended periods of time at Salt Trading and Food Management and Trading Corporation because sugar was not easily accessible in the market.

There was a quota system in place at the corporation, allowing only two kilos at a time.

The Food Management and Trading Company and the Salt Trading Corporation were given permission to import 30,000 tonnes of sugar, or 15,000 tonnes apiece, at the September 9 Cabinet meeting. Additionally, the meeting voted to waive the 50% customs duty.

As the holiday season approaches, "importing sugar through global tender will cause a delay," stated Food Management and Trading Company information officer Sharmila Neupane Subedi.

Therefore, in order to expedite the process, we are developing a different option: bringing sugar through a government-to-government, or G2G, agreement.

"There is little chance of importing sugar for Dashain, Tihar, and Chhath if the G2G model fails," Subedi stated. During these festivities, there is an exponential increase in the demand for sugar. The supply companies intend to gradually import sugar.

It has not yet been determined how much sugar will be brought in during the first phase of the G2G arrangement. "Competitive bidding will be used to import the remaining quantity of sugar after a certain amount is imported in the first phase."

Subedi claims that the CEO of the Food Management and Trading Company met with National Cooperative Exports Limited of India for the first time to explore bringing in sugar under the G2G concept.

Although the government waives 50% of customs duties, Subedi stated that the pricing will be decided by the Indian counterpart's rate.

In the market, the retail price per kg is Rs 110.
According to Subedi, the business is out of sugar. The Food Management and Trading Company hasn't imported the product in more than a year.

The Salt Trading Corporation's information officer, Kumar Rajbhandari, stated that his organization launched the bid to import sugar two weeks ago.

Sugar might arrive before the celebration if we can locate Indian suppliers. Our entire endeavor is focused on delivering sugar on schedule. When the provider is selected, we are ready to execute a contract seven days later.

Rajbhandari claims that although they began their preparations a long time ago, they only recently received the official letter.

Rajbhandari stated, "We were ready and opened the tender as soon as we received the go-ahead."

The Dashain starts on October 3 this year. But with tons of sweets being marketed all throughout the nation, Tihar and Chhath both consume large amounts of sugar.

Each year, Nepal uses 275,000 tons of sugar, of which 150,000 are produced domestically and the remainder is imported.

Consumer rights advocates fear that the prolonged procurement process for sugar is being done for a reason.

President of the National Consumer Forum Prem Lal Maharjan stated, "This year, too, the government delayed its decision—an intentional delay that occurs during the festivals every year."

"Sugar prices will skyrocket."

According to Maharjan, there is reason to believe that the government and influential traders were working together to cause the delay. He continued, "Private traders will benefit from the delay by artificially raising the price."

Three months ago, the National Consumer Forum addressed the government in a letter.

The import of 20,000 tonnes of sugar for the holiday season was approved by the finance ministry on September 13, the previous year. To meet the expected demand, the Ministry of Industry, Commerce, and Supplies requested the import of 60,000 tons.

Consumer rights activists claim that because of the market panic brought on by the finance ministry's delayed clearance, sugar prices virtually doubled.

They claimed that "something fishy happens every year when it comes to sugar imports."

India, the world's second-largest producer of sugar after Brazil, prohibited mills from exporting sugar in October of last year, marking the first such restriction on sugar exports in seven years.

India, the largest user of sweeteners worldwide, is reportedly considering prolonging its ban on sugar exports for a second year in a row as it faces the possibility of reduced sugarcane yield.

The news agency reports that New Delhi intends to forbid mills from exporting sugar when supplies from Brazil, the world's largest producer, are anticipated to decline due to a drought in the country of South America.

When the nation was experiencing a severe sugar shortage in November of last year, India immediately permitted Nepal to import 25,000 tonnes, with the permit being good till September of this year.