Conflict Between Industrialists and Traders Raises Consumer Concerns Amid Sugar Shortage
The Nepalese market is experiencing a shortage of sugar, with retail prices rising up to NPR 120 per kilogram. Retailers and wholesalers accuse manufacturers of creating an artificial shortage, a claim the industrialists have denied. A significant portion of the sugar import quota from India has yet to arrive, which could exacerbate the shortage during the upcoming festival season. Kathmandu, 31st Shrawan – Following India’s decision to impose restrictions on sugar exports, fears arose over a potential shortage in Nepal’s sugar supply. However, the Nepal Sugar Industry Association reassured consumers that sufficient sugar stocks were available domestically. Despite this, after three months, sugar scarcity in the market has increased.
Retail sugar prices have surged from NPR 95 to NPR 120 per kilogram. Chandrakala Bhandari, a housewife from Shankhamul, Kathmandu, asked a retailer why prices had risen. The retailer explained that wholesalers had received only limited sugar supplies at higher costs. She commented, “With the festival season approaching, black marketing and price gouging by industrialists and traders have already begun.” Traders have reported that sugar supplies have become irregular. Dev Shrestha, a retailer from Budhanagar, recounted that wholesalers have been delaying supply, claiming sugar is not arriving.
The Retail Traders Association refutes the notion of an actual shortage, asserting instead that price hikes are being manipulated artificially. Association President Pavitra Man Bajracharya accused major traders and manufacturers of deliberately increasing prices. He stated, “Taking advantage of rumors about India’s sugar export restrictions, prices have been raised opportunistically.” While wholesalers blame industrialists, the latter deny any shortage. In response, Shashikant Agrawal, President of the Sugar Producers Association, suggested that traders may be hoarding stocks to create scarcity.
Currently, no verified data is available regarding sugar inventories. Industrialists claim stocks have been exhausted, whereas the Association asserts that sufficient sugar remains available. A considerable portion of the sugar import quota from India is still pending arrival, which has disrupted supply chains. Given the heightened sugar consumption during festivals, it is anticipated that existing stocks may not be adequate to meet market demand.
