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Sugar Price to Increase

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Sugar Price to Increase
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June 29: India has imposed 20 percent duty on Nepal bound sugar exports. India made the decision to levy the duty while Nepal is preparing process to import sugar. Stating the low production of sugar, India also removed Rs 3 per kg import concession to Nepal. Due to the additional import duty and removal of the concession, sugar price in Nepal is expected to rise.

Salt Trading Corporation (STC), the government owned sugar importer, has moved ahead with the process to import 30,000 metric ton sugar. According to the company, letter of credit (LC) has also been opened for global tender for the import of sugar. “India’s move is aimed that reducing the sugar import to Nepal,” said Kumar Rajbhandary, Assistant General Manager of Salt Trading Corporation.

According to him, India decided to impose 20 percent duty on sugar export after Nepal negotiated to reduce the charge which the southern neighbor sought to levy 25 percent earlier. “It is not possible to further lessen the export duty,” said Rajbhandary. 

The government had directed STC to import 30,000 metric tones of sugar on June 3. STC requested the government to import sugar three months earlier. However, the government gave permission in the last moment. “Had the government permitted us the sugar import three months earlier, the import would have been in usual rate,” he said.

Meanwhile, the government has reduced customs charge on sugar import to one percent from 15 percent while keeping the value added tax (VAT) unchanged.

 

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