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12k tons of sugar to be imported from Brazil
KATHMANDU, APR 21 -
National Trading Limited and Salt Trading Corporation are rushing to import sugar from new Brazilian suppliers as the provision of 1 percent customs duty is applicable only till the end of the current fiscal year.
In response to unnatural price hikes and scarcity of sugar caused by a decline in production in the country, the government had ordered the two entities to import 50,000 tons of sugar within the current fiscal year. However, so far only 2,600 tons have been imported from India.
Despite continuous efforts, National Trading and Salt Trading were not able to import sugar from Brazil and Thailand due to a rise in international prices. They had opened letters of credit (LC) for the import of 25,000 and 12,500 tons of sugar from two countries. The LCs were subsequently cancelled because of delays in shipment.
“Now we have started a new process to import 12,500 tons of sugar from a new supplier as soon as possible,” said Laxman Agrawal, managing director of National Trading. “This time we have urged the suppliers to put up a performance bond of 2 percent so that we do not have to face any monetary losses even if they fail to deliver the sugar.”
National Trading and Salt Trading are planning to import at least 25,000 tons of sugar from new Brazilian suppliers within the next three months with an eye on the festive season of Dashain and Tihar.
“We do have stock procured from domestic producers, but that will not be sufficient to fulfill the requirement during the festivals,” said Agrawal. He added that the market price had gone down after they started releasing sugar at Rs. 80 per kg by obtaining it from domestic sugar mills.
Currently, the price ranges between Rs. 70 to 72 per kg. After prices skyrocketed amid the scarcity, the government had decided to buy 5,000 tons of sugar from domestic mills and release it in the market at Rs. 80 per kg four months ago. In January, sugar was selling for more than Rs. 90 per kg.
According to officials, National Trading has procured 1,300 tons of sugar out of the assigned 2,000 tons. Salt Trading and Nepal Food Corporation have procured 2,000 and 1,000 tons of sugar respectively.
Posted on: 2010-04-22 08:44
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