PAC draws the line on sugar price at Rs 63/kg

Kathmandu, October 4.

The Public Accounts Committee of the Parliament today directed the government to do the needful to bring down the soaring sugar price to Rs 63 per kg in accordance with the commitment made by sugar mill operators.

The government on September 16 had imposed restriction of 100,000 tonnes on sugar import for the ongoing fiscal following pressure from sugar mill operators, who had expressed commitment not to let sugar price cross Rs 63 per kg. The move was intended to help clear the stock of domestic sugar that had piled up ‘due to domestic sugar losing competitiveness owing to the increasing inflow of cheaper foreign sugar’.

However, sugar price in the domestic market has crossed Rs 80 per kg after the quantitative restriction on sugar import.

“Failure of the government to implement its understanding with sugar mill operators has proved costly for consumers ahead of the festive season. We direct the government to maintain sugar price as per the agreement with sugar mill operators as soon as possible,” said Bharat Shah, chairman of PAC.

Lawmakers also expressed concern about the failure of sugar mill operators to clear dues owed to sugarcane farmers though it was one of the preconditions that the government had set for enforcing the restriction on sugar import.

Lawmaker Rajendra Kumar KC said the government’s decision to limit the import of sugar had barely benefited sugarcane farmers, as sugar mills were making money by hoarding sugar and promoting artificial crisis.

“The government and other related market regulatory agencies should play a proactive role in curbing soaring sugar price and prices of other essential commodities,” said KC.

Another lawmaker Hridayesh Tripathi said sugar mills had ‘blackmailed’ the government to impose quantitative restriction on sugar import and raise the import duty on the product through commitments to release payments to sugarcane farmers. “As sugar price is surging daily and farmers are not getting their payments, the government should adopt immediate and farsighted measures to ensure a scientific fluctuation in price of sugar and timely payment to farmers,” he added.

Meanwhile, the Public Affairs Committee meeting today formed a five-member sub-committee under the coordination of lawmaker Lekh Raj Bhatta to study the cause of present hike in sugar price and suggest possible measures to ensure effective supply of essential goods in the market. The sub-committee has been asked to submit its report to PAC within 15 days.

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