Why sugar price rises ahead of major festivals every year?
Summary
Sugar prices in Kathmandu Valley have climbed to as high as Rs. 150 per kg ahead of Dashain and Tihar, reviving the annual pattern of festive-season shortages and price hikes. Officials and market stakeholders blame low domestic production, delayed imports and possible hoarding, while government market intervention has begun easing prices.
Key Points
- Retail sugar prices in the Kathmandu Valley have risen to Rs. 130–150 per kg ahead of Dashain and Tihar, compared with about Rs. 110 a month ago.
- Officials say the main drivers are seasonal demand, declining domestic stocks, an estimated annual supply gap, and delays in approving imports.
- The government has allowed the Salt Trading Corporation to import 25,000 tonnes of sugar at a 1 per cent customs duty and has started market intervention.
- Experts and consumer activists say long-term fixes such as better stock management, timely imports and stronger action against artificial shortages are needed.
