28 January 2021, Kathmandu
Illegal traders have started smuggling sugar after the Biratnagar government banned the import of Supadi, Kerau, Pepper, and Chokada.
In the last 10 months, traders have been engaged in illegal imports of sugar. After they have lost their stock of products illegally exported to India.
The import of four key products smuggled into India was banned on 13 Chaitra last year.
After the stockpile of illegally exported products to India, those who were tempted. To participate in illegal trade gave up their exports and resorted to illegal imports. Sugar is still the primary product of illegal imports.
The wholesale price of sugar in India is currently Rs 55 to Rs 58 per kg. Nepal’s sugar industries are selling at Rs 77 to 78 per kg. Illegal traders have given priority to sugar after the price varied up to Rs 20 per kg.
Devkinanda Agrawal, a wholesaler in Shanihat, Biratnagar, used up to 30 bags of sugar per day during the lockdown. As September approached, the sales of sugar in his shop started to decline. Nowadays, factories often need bills of VAT. Retail grocers don’t like that.
“Some retail and grocery stores sometimes buy a bag of sugar with a VAT bill to show the monitoring.” Said businessman Agrawal. The same retailers will be back in 5/6 months hunting for sugar with VAT bills.
Agarwal added, “A businessman who used to buy a sack of sugar once used to take one sack a day when the border was sealed.” It is obvious from this that there is a lot of smuggled sugar here.
Customers who have been trading for a while in Shankar Kirana, Murari Kirana, Kwality Kirana, Pawan Kirana. And other retail stores in Gudari Bazaar, Biratnagar, are buying sugar at Rs 75 per kg.
Krishna Gautam, manager of Eastern Sugar Mills in Sunsari, says, “We’re selling sugar to wholesalers at Rs 76 to Rs 77 per kg. Though it’s incredible to get it at Rs 75 in retail stores. The price proves that it is the smuggling of sugar. Sugar retailers from factories in Nepal make a profit only if they sell more than Rs 80 per kg.
According to Manager Gautam. A new season of sugar cane crushing and sugar production has begun since the beginning of December. But no businessman in the border region has taken sugar out of the plant. More than 95% of the sugar sold went to Kathmandu or the eastern hilly area.
Entrepreneur Jeevan Rijal has imported 300 metric tonnes of sugar from India. After Nepal’s sugar industry raised the price of sugar from Rs 77 to Rs 78 per kg.
‘Indian sugar has come to Rs 74 per kg in warehouses after paying 40% of customs duty and VAT,’ said Rijal. But sales have not stopped. If it is available in retail grocery stores at Rs 75 per kg.
He said he would sell the imported sugar, biscuits, and confectionery to the industry.
Sources suggest that sugar is being smuggled from all the small border points. The most smuggled places in Morang are Ratuwamai in the eastern-south border area, Bardanga and Daraiya Basti near the Biratnagar, Islampur, and Materuwa State Police Offices.
Chief of the Sijuwa Area Police Office and Police Inspector Bishnu Khadka said that his patrol team was regularly arresting smuggled sugar.
Inspector Khadka said the suspects’ houses and shops were searched and the border was tightened.
Chief of the District Police Office, Morang, SP Santosh Khadka, reported that the border region was now under strict security.
