Sweet prices have increased by up to 20 percent ahead of Tihar, while sales have surged by 25 times, according to a local report. Businesses are struggling with production and supply management due to shortages of sugar and milk, even as consumer demand for sweets has led to crowded shops.Nepal’s annual sugar requirement is approximately 250,000 tonnes, but domestic production ranges only from 180,000 to 190,000 tonnes, according to the Nepal Sugar Mills Association. Private sugar mills currently hold about 7,000 tonnes of sugar in stock.To address the supply gap, the Ministry of Industry, Commerce and Supplies has approved the import of 25,000 metric tonnes of sugar with a 1 percent customs duty. The Salt Trading Corporation (STC) is selling sugar at Rs 105 per kg through its outlets. However, market prices have risen from Rs 110 per kg in mid-August to Rs 125 per kg, with some retailers selling for up to Rs 130 per kg. Due to supply disruptions, the STC has reduced the sugar sales limit per consumer from six kg to two kg.Regarding milk, Nepal’s total milk production reached 2.72 million tonnes in the fiscal year 2024/25, according to the National Statistics Office.The Department of Food Technology and Quality Control (DFTQC) has intensified market inspections ahead of Tihar. The department found serious food hygiene violations at several businesses in the Kathmandu Valley on September 22 and 24. Effective October 28, the DFTQC has directed sweet businesses to clearly display the names of sweets, their major ingredients, the type of oil or ghee used, expiry dates, and prices per kilogram.
Background
- Tihar is a major festival in Nepal, known for lights and sweets, leading to a significant increase in demand for confectionery.
- Nepal's annual sugar requirement is approximately 250,000 tonnes, while domestic production can reach a maximum of about 190,000 tonnes, creating a supply deficit.
