Print Edition - 2019-02-06 | MONEY
Imported sugar trickles into market after being stranded at Dry Port
- The government imposed quantitative restriction on imported sugar nearly five months ago to protect domestic sugar producers who complained about the low price of imports
Feb 6, 2019-
Salt Trading Corporation has released 10,000 sacks of sugar that had been lying idle for four and a half months at the Dry Port in Sirsiya, Birgunj, following the import restriction imposed by the government The sugar was imported targeting the Dashain, Tihar and Chhat festivals when demand for sugar increases significantly.Umesh Shrestha, chief of the Customs Office at the Dry Port, said that the corporation has been allowed to release its sugar following the Cabinet’s decision two weeks ago. The Cabinet has given approval to release 2,500 tonnes of sugar belonging to the corporation based in Birgunj. Similarly, another 144 tonnes of sugar imported by the private sector that had remained idle at Nepalgunj Customs have also been cleared.
The corporation has been clearing its stranded stock since Saturday, he said.
Animesh Kumar, finance head and information officer at Himalayan Terminal–the firm that manages the dry port, said that the corporation deposited Rs10 million as collateral to release 10,000 sacks of sugar. It owes the dry port Rs49.8 million in warehouse charges.
“We permitted the corporation to release 20 percent of its stranded sugar after they deposited Rs10 million.” “It will be permitted to release its remaining stockpile of sugar after clearing its dues,” said Kumar.
On September 17, 2018, the government imposed quantitative restriction on imported sugar. The government took the measure in the name of protecting domestic sugar producers who were complaining about not being able to sell the domestic product as cheaper imported sugar had dominated the market.
The dry port does not charge any amount to the importers till five days on the entry of goods at the Dry Port. After five days to 10 days, the warehouse charge is Rs77 per tonne excluding VAT.
For 11 to 20 days, the terminal charges Rs99 per tonne and Rs157 per tonne from 21 days onward.
The corporation had purchased sugar from Renuka Sugar Mills in West Bangal of India.
Published: 06-02-2019 12:07