As Tihar approaches, demand for food and other daily essentials is picking up, with households preparing sweets, sel roti and other festive dishes. Government agencies and traders say there will be no shortage of sugar, rice, pulses and cooking oil during the festival, although LPG shortages remain a concern.

Sugar prices have been rising since April, with shortages reported in the market ahead of Dashain. India had imposed a ban on sugar exports from May 13 to September 30, triggering a supply crunch that pushed retail prices in Nepal to as high as Rs160 per kilogram. The Salt Trading Corporation says it has sufficient stocks to prevent a repeat of the shortage during Tihar.

Nepal’s monthly sugar demand stands at 20,000 to 25,000 tonnes, rising to around 30,000 tonnes during the festive season, including Dashain, Tihar and Chhath, according to the corporation. Annual demand is estimated at about 300,000 tonnes. Domestic production accounts for roughly 200,000 tonnes, with the remaining 100,000 tonnes met through imports.

The Salt Trading Corporation currently holds around 11,700 tonnes of sugar, equivalent to 235,000 sacks. It has also purchased 12,000 tonnes from domestic producers. The government had set a deadline of October 20 for the corporation to import 25,000 tonnes of sugar for the festive season, but it managed to bring in only around 16,000 tonnes, said Kumar Rajbanshi, the corporation’s spokesperson. He said the deadline needed to be extended to allow further imports.

Rajbanshi said the government had made arrangements to ensure consumers could buy food and other essentials at affordable prices during the festivals. With sugar demand expected to rise, the government was working to maintain supplies and keep prices in check, he said.

“We have enough sugar in stock to meet demand during Tihar. There is no need for consumers to panic,” Rajbanshi said.

He added that the import arrangements were also intended to prevent traders from taking advantage of shortages to charge excessive prices. Stocks of rice, pulses and other food staples were adequate, while cooking oil supplies were also sufficient to meet demand, he said.

The government has opened subsidised sales outlets at 38 locations across the country ahead of Dashain, Tihar and Chhath. Sugar is being sold at Rs100 per kilogram at these outlets, according to Rajbanshi.

The state-owned Food Management and Trading Company Limited currently has around 1,250 tonnes of sugar in stock and sells it through its outlets across the country. The company purchased 3,500 tonnes this year, including 2,500 tonnes from the domestic market and 1,000 tonnes from India, said Madhav Mishra, the company’s information officer.

“The market is not facing a sugar shortage at present,” Mishra said. The company sells sugar at Rs109 per kilogram in Kathmandu and through outlets elsewhere in the country. He said its stocks would be sufficient to meet demand during Tihar.

Devendrabhatta Shrestha, president of the Nepal Food, Grocery and Wholesale Entrepreneurs’ Association, also said there were no supply problems with sugar or other food staples. The Salt Trading Corporation’s continued supply of sugar had helped prevent shortages in the market, he said, adding that consumers would not face shortages of rice, pulses, sugar and other essentials during Tihar.

Sugar is currently selling for around Rs110 per kilogram, Shrestha said, although transport costs can cause prices to vary by one or two rupees depending on the location. While there is no shortage, sugar imported through channels other than the state-owned agencies is reportedly being sold for between Rs120 and Rs135 per kilogram, he said.

Amulkaji Tuladhar, general secretary of the Nepal Retailers Association, said food supplies were adequate, although prices had risen somewhat compared with previous months. Retailers are required to display price lists when selling food items, he added.

LPG shortages persist

While food supplies are expected to remain steady, LPG shortages continue to affect the market. The shortage, which began in February, has yet to ease. Stakeholders say lower imports and problems with the distribution system have both contributed to the difficulty in getting gas to consumers. They expect supplies to remain tight during Tihar as demand rises and imports fall short of expectations.

Diwan Chand, president of the Nepal LP Gas Industry Association, said supplies had not returned to normal because LPG imports had declined. He warned that demand would increase as temperatures drop and households use more gas for heating.

“Gas heaters and geysers see greater use during winter, so imports need to be increased,” Chand said.

He also complained that a commitment by Industry Minister Deepak Sah to bring in 160 LPG tankers a day had not been met.

The Nepal Oil Corporation, however, says LPG imports are sufficient and that the main problem lies in distribution. According to its spokesperson, Manoj Thakur, supplies have been adequate for Tihar, but delays in delivering cylinders to dealers have left consumers facing shortages in some areas.

Thakur said the government’s commitment to import 160 tankers a day did not mean that the full quantity had to be brought in every day. Imports were adjusted according to demand, he said.

“We load 160 tankers when required. It does not mean we need that many every day,” Thakur said. “In the past two days, 149 and 137 tankers were loaded.”

He said there was no problem with LPG imports and that shortages in some areas were largely the result of delays in getting supplies to dealers.