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Government Delays Procurement of Subsidized Sugar 

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Government Delays Procurement of Subsidized Sugar 
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August 24: The government’s negligence has caused delay in purchase of subsidized sugar. Lack of coordination between the Ministry of Industry, Commerce and Supplies, which is responsible for giving permission to procure sugar at subsidized rate, and the Ministry of Finance, which releases budget, is the main reason behind the delay in procurement.

According to the Salt Trading Corporation, which has been given the responsibility of buying subsidized sugar, they had sent a letter to the MoICS about a year ago seeking permission to buy sugar. At that time, due to the negligence of the Ministry of Commerce, the STC could not get permission to buy sugar. After a delay of about eight months, the Ministry of Commerce had sent a letter to the Ministry of Finance last April to allow the STC to buy 30,000 tons of sugar. 

Urmila KC, under secretary at the MoICS, said that the Ministry of Finance is yet to respond to the letter. According to her, their repeated requests to the Ministry of Finance have fallen in deaf ears. Meanwhile, the finance ministry said the delay was due to a change of government. 

At present, the Salt Trading Corporation has only about 300 tons of sugar in stock. The STC cannot sell more than 2 kg of sugar per person due to the fear of running out of stock as the stock is insufficient. Due to this, consumers have to buy sugar at high prices in the market. The STC said that they will not be able to give subsidized sugar to the customers for festivals like Dashain and Tihar even if they are allowed to buy sugar now. 

The spokesperson of STC Kumar Raj Bhandari said that even if they are allowed to buy sugar now, it takes about 45 days to complete the tender process and about two months for the sugar to reach Nepal. 

According to stakeholders, Nepal usually consumes about 30,000 tons of sugar in a month. It is estimated that up to 70,000 tons of sugar is consumed in big festivals including Dashain, Tihar and Chhath. As per the government statistics, Nepali sugar industries produce up to 170,000 tons of sugar annually, while the rest of the insufficient sugar is imported from other countries. This year, Nepal produced only 150,000 tons of sugar. 

 

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