The government is preparing to purchase 20,000 tons of sugar to make it available to the public at subsidized prices during the upcoming Dashain and Tihar festivals. The supply will be managed through the Salt Trading Corporation and the Food Management and Trading Company, pending approval from the Ministry of Finance.
Although both agencies had earlier sought tax exemptions for sugar imports, the Finance Ministry has not yet approved the request. The process stalled after domestic sugar producers assured the government that they have sufficient stock to meet festive demand.
According to the Ministry of Industry, Commerce, and Supplies, domestic producers have expressed readiness to supply sugar at the government-set price. If agreed, Nepal would not need to import sugar from India.
Talks with sugar mill operators are expected to conclude next week. Producers have urged the government to prioritize their unsold stock, warning that stored sugar may melt or go to waste if not distributed soon.
However, if local industries fail to provide sugar at the proposed rate, the ministry indicated it will proceed with duty-free imports from India to ensure sufficient supply during the festive season.
