Only One Day Of Sugar Left with Salt Trading
Only One Day Of Sugar Left with Salt Trading
The government's trading company Salt Trading Corporation, which has been selling food to consumers at concessional rates, is on the verge of running out of sugar. It is said that the current stock of the corporation will reach one day only when it is sold as usual.
Under normal circumstances, Salt Trading has been selling one thousand metric tons of sugar daily from its outlets. At present, only the same amount is in stock, said Kumar Rajbhandari, spokesperson of Salt Trading.
As the stockpile is depleted, it has stopped selling sugar to big traders. Rajbhandari says that they are giving only a controlled amount of five kg at most to the retail consumers.
Sugar traders have been raising their prices in the market as stocks have been depleted with salt trading, which has a large amount of 'buffer stock' for market intervention.
Traders say that there are indications that the price of sugar may go up in the market as the government is running out of sugar. At present, the retail price of sugar in the market has reached Rs 90 per kg in a few days.
Salt Trading, on the other hand, is selling at Rs 77.50 per kg. But its stock is running out now. After this, private sector sugar traders are likely to increase its price, says Raj Kumar Shrestha, president of the Nepal Grocery Trade Association.
He says, “The wholesale price of sugar, which used to be Rs 77-78 per kg a week or ten days ago, has now reached above Rs 80. It is seen that the private sector traders will increase the price even after the stock with the government is exhausted.
Even before this, the traders had increased the retail price to Rs 100 per kg as the stock of sugar with government institutions was running out. Even now, the market price of sugar is expected to rise in the same manner.
The government has instructed salt trading as well as food management and trading companies to import sugar at 50 percent customs duty exemption and keep large stock of buffer stock so that prices do not rise due to artificial shortage in the market. The government has allowed the import of a total of 30,000 metric tonnes of sugar through the two bodies.
The government's trading company Salt Trading Corporation, which has been selling food to consumers at concessional rates, is on the verge of running out of sugar. It is said that the current stock of the corporation will reach one day only when it is sold as usual.
Under normal circumstances, Salt Trading has been selling one thousand metric tons of sugar daily from its outlets. At present, only the same amount is in stock, said Kumar Rajbhandari, spokesperson of Salt Trading.
As the stockpile is depleted, it has stopped selling sugar to big traders. Rajbhandari says that they are giving only a controlled amount of five kg at most to the retail consumers.
Sugar traders have been raising their prices in the market as stocks have been depleted with salt trading, which has a large amount of 'buffer stock' for market intervention.
Traders say that there are indications that the price of sugar may go up in the market as the government is running out of sugar. At present, the retail price of sugar in the market has reached Rs 90 per kg in a few days.
Salt Trading, on the other hand, is selling at Rs 77.50 per kg. But its stock is running out now. After this, private sector sugar traders are likely to increase its price, says Raj Kumar Shrestha, president of the Nepal Grocery Trade Association.
He says, “The wholesale price of sugar, which used to be Rs 77-78 per kg a week or ten days ago, has now reached above Rs 80. It is seen that the private sector traders will increase the price even after the stock with the government is exhausted.
Even before this, the traders had increased the retail price to Rs 100 per kg as the stock of sugar with government institutions was running out. Even now, the market price of sugar is expected to rise in the same manner.
The government has instructed salt trading as well as food management and trading companies to import sugar at 50 percent customs duty exemption and keep large stock of buffer stock so that prices do not rise due to artificial shortage in the market. The government has allowed the import of a total of 30,000 metric tonnes of sugar through the two bodies.
