In preparation for the upcoming festive season, Nepal has finalized plans to import a substantial 20,000 metric tonnes (MT) of sugar from neighboring India. The decision stems from Nepal’s inadequate domestic sugar production to meet the surge in demand during festivals such as Vijaya Dashami and Deepawali, with India traditionally serving as a key supplier of sugar to the Himalayan nation.

Mitigating Costs for Festivities: In a bid to alleviate the financial burden on consumers and businesses during the festive season, the government of Nepal has granted permission for the import of sugar with a generous 50% discount on customs duty. This significant concession aims to ensure that sugar remains affordable for all amid the celebrations.

Key Importers: The import of sugar will be orchestrated by two prominent entities, namely the Salt Trading Corporation (STC) and the Food Management and Trading Company. Each of these organizations is tasked with importing 10,000 MT of sugar to satisfy the heightened demand.

Demand vs. Domestic Production: The domestic sugar demand in Nepal is estimated to hover around 300,000 MT, while domestic production lags significantly, reaching approximately 100,000 MT. Consequently, Nepal relies on imports, primarily from India, to cover at least 70% of its sugar requirements.

Challenges in Boosting Domestic Production: Nepal’s government has been diligently working to bolster domestic sugar production in recent years. However, several challenges have hindered progress, including constraints such as limited available land, water scarcity, and the burden of high production costs.

Temporary Solution for Festive Demand: The decision to import sugar from India is a stopgap measure aimed at ensuring that the festive season’s sugar requirements are met. Nevertheless, Nepal’s government remains steadfast in its commitment to enhancing long-term domestic sugar production to achieve self-sufficiency.

As the festive season approaches, the import of sugar from India will serve as a vital lifeline to cater to the increased demand, ensuring that celebrations across Nepal can take place without disruption. While this measure addresses the immediate need, the government’s ongoing efforts to boost domestic sugar production hold promise for a more self-reliant future.