Despite the present time being the sugar season, prices have surged uncharacteristically. While mills have been reluctant to pay sugarcane farmers the rates they have been demanding, advocacy groups suspect foul play in price hike of sugar.

Sugar prices have soared by Rs 500 per quintal in the wholesale market. The wholesale price was Rs 6,500 per quintal. Traders are selling sugar at Rs 70-75 per kg retail, up from Rs 65 per kg two weeks ago.   

Likewise, the price of pulse (masuro) increased by Rs 10 per kg while soybean oil rose by Rs 5 per litre in the retail market. Traders in the Kathmandu valley are selling masuro pulse at Rs 120 per kg against Rs 110 a week ago. Soybean has been selling at Rs 140 per litre against of Rs 135 per litre earlier. Wholesalers have pointed to swelling demand from makers of ice cream, fruit juice and cold beverages for the rise in sugar prices. “With the start of the summer season, demand for ice cream and soft drinks rises so manufacturers have been purchasing large quantities of sugar to make these products,” said Ishwor Shrestha, a sugar wholesaler.

However, Jyoti Baniya, general secretary of the Forum for Protection of Consumer Rights, blamed the hike in prices to manipulations by manufacturers and traders. “The price hike is clearly linked with the monopoly of sugar mills,” he said. “Big sugar mills are hiking the price in the name of farmers, but they are not paying the farmers the actual rates.”  

Meanwhile, state-owned Salt Trading Corporation (STC) which also sells sugar, said it had not hiked its prices. “The price remains the same at Rs 69 per kg,” said Urmila Shrestha, general manager of STC. “There are no changes in sugar prices as we are supplying the market from our stock which was imported from India during the festival season last year,” she said.

President of the Retailers Association Nepal Pabitra Man Bajracharya said that suppliers had raised oil and pulse prices without significant reasons. “Prices of sugar, oil and pulse have gone up in the wholesale market, but we are unaware of the reason,” he said. “Big suppliers might have hiked prices by holding on to their stocks.”