The government has lifted quantitative restriction on sugar import as it has decided not to extend the restriction on sugar import after the beginning of the new fiscal year 2019-20.
The government had extended quantitative restriction on sugar import – under pressure from sugar mill operators – by three months till the end of fiscal year 2018-19, claiming to limit excessive supply of cheaper foreign sugar in the domestic market. The mill owners had convinced the government – especially the Prime Minister KP Oli – that the cheap import of foreign sugar had lowered the demand of comparatively costly Nepali sugar. Convinced by the mill owners, Prime Minister Oli himself took action in fixing a quota on sugar import in September. The restriction initially in place only till mid-April has been extended till the end of the current fiscal year. After quantitative restriction, the price of the sugar did not go down rather increased hurting the consumers. The lifting of the restriction on sugar import will bring the price down as the imported sugar – especially from Pakistan and India – is cheaper compared to domestic sugar.
After lifting the restriction, the traders can now import any quantity of sugar that was barred to be imported not more than 100,000 tonnes during the last fiscal year.
However, the sugar mill operators have criticised the government for not extending the quantitative restriction. Urging the government to extend such restriction on sugar import for at least three months so that they can clear the stock of Nepali sugar, they said they still have almost 100,000 tonnes of sugar in stock, which will be enough to meet domestic demand for four months.
According to Nepal Sugar Producers Association, the crushing of sugarcane is going to begin within a few months. “The government must calculate the domestic demand before lifting the restriction,” the association said.
But the sugarcane farmers have been blaming the mill owners for not paying them the price of the sugarcane. The mill owners have promised the government that they will pay the farmers their dues, if they are allowed to clear their stock – restricting the foreign sugar import – but neither the farmers been able to get their dues nor the consumers get the cheaper sugar.
The imported sugar is cheaper as the Indian sugar is available at almost Rs 55 per kg in the Indian retail market and factory price is even cheaper. Currently, the domestic sugar costs at Rs 78 per kg.
The government had extended quantitative restriction on sugar import – under pressure from sugar mill operators – by three months till the end of fiscal year 2018-19, claiming to limit excessive supply of cheaper foreign sugar in the domestic market. The mill owners had convinced the government – especially the Prime Minister KP Oli – that the cheap import of foreign sugar had lowered the demand of comparatively costly Nepali sugar. Convinced by the mill owners, Prime Minister Oli himself took action in fixing a quota on sugar import in September. The restriction initially in place only till mid-April has been extended till the end of the current fiscal year. After quantitative restriction, the price of the sugar did not go down rather increased hurting the consumers. The lifting of the restriction on sugar import will bring the price down as the imported sugar – especially from Pakistan and India – is cheaper compared to domestic sugar.
After lifting the restriction, the traders can now import any quantity of sugar that was barred to be imported not more than 100,000 tonnes during the last fiscal year.
However, the sugar mill operators have criticised the government for not extending the quantitative restriction. Urging the government to extend such restriction on sugar import for at least three months so that they can clear the stock of Nepali sugar, they said they still have almost 100,000 tonnes of sugar in stock, which will be enough to meet domestic demand for four months.
According to Nepal Sugar Producers Association, the crushing of sugarcane is going to begin within a few months. “The government must calculate the domestic demand before lifting the restriction,” the association said.
But the sugarcane farmers have been blaming the mill owners for not paying them the price of the sugarcane. The mill owners have promised the government that they will pay the farmers their dues, if they are allowed to clear their stock – restricting the foreign sugar import – but neither the farmers been able to get their dues nor the consumers get the cheaper sugar.
The imported sugar is cheaper as the Indian sugar is available at almost Rs 55 per kg in the Indian retail market and factory price is even cheaper. Currently, the domestic sugar costs at Rs 78 per kg.
No comments:
Post a Comment