Nepal imports at least 70% sugar from India. File image for representation.
| Photo Credit: REUTERS

Ahead of the festive season, Nepal is set to import 20,000 metric tonnes (MT) of sugar from India, which meets at least 70% of the Himalayan country’s domestic annual demand of approximately 3,00,000 MT.

In view of the upcoming festivals, including Vijaya Dashami and Deepawali, the Ministry of Industry, Commerce and Supplies has asked the Finance Ministry to give customs waiver for importing 60,000 MT of sugar to meet the local demand. The Finance Ministry has, however, given permission to import only 20,000 MT for the time being.

According to Finance Ministry spokesperson, Dhaniram Sharma, the Ministry has given 50% discount on customs duty, which means 15% less from the earlier imposed 30% customs duty.

Two companies, Salt Trading Corporation (STC) and Food Management and Trading Company, both would import 10,000 MT sugar each for the upcoming festival season, according to Sharma. However, divisional manager of STC Brajesh Jha said that it had asked the government permission to import 50,000 MT of sugar.

According to Mr. Jha, Nepal’s domestic demand for sugar stands at 3,00,000 MT and it needs to import a huge quantity of sugar mainly from India. There are 12 sugar factories in Nepal that produce around 1,00,000 MT of sugar.

According to an estimate, Nepal imports at least 70% sugar from India. Besides, thousands of tons of sugars are brought through illegal channel without paying customs duty.

Sugar is available in the black market in Kathmandu and the prices ranges from Nepali Rupees 100 to 125 per kg, where as it costs around ₹40 – 50 in India.

Area under sugarcane has increased 4% this year. This is expected to result in sugar production going up to 399.97 lakh tonnes (before diversion for ethanol) next season as against 394 lakh tonnes this sugar season, says ISMA.
| Photo Credit: iprachenko

Sugar production during the next season (October 2022 to September 2023) is expected to be about five lakh tonnes higher than the current season, according to the Indian Sugar Mills Association (ISMA) estimates.

Area under sugarcane has increased 4% this year. This is expected to result in sugar production going up to 399.97 lakh tonnes (before diversion for ethanol) next season as against 394 lakh tonnes this sugar season, the Association said in a press statement.

In the current season, almost 34 lakh tonnes of sugar was diverted for ethanol till July 10. Ethanol blending in 2022-2023 is expected to be 12% and hence, about 545 crore litres of ethanol would be required. It is estimated that about 45 lakh tonnes would be diverted for ethanol next sugar season.

With domestic consumption of sugar estimated to be approximately 275 lakh tonnes, 2022-2023 sugar season would have almost 80 lakh tonnes of surplus sugar which can be exported, the ISMA said.