“The decision to reduce customs duty has encouraged increased illegal imports, which has put the domestic sugar industry in crisis,” said Shashikant Agrawal, president of the sugar producers’ association, at a press conference organised by the Sugar Producers’ Association. “Of last year’s production, 20 per cent sugar is still in stock,” he added. “

Agrawal said that only 70 per cent of the production of sugar has decreased and 20 per cent of the sugar has not been sold due to illegal imports. Currently, there are 13 sugar factories operating in Nepal, in which 115,000 farmer families participate.

Expressing hope that sugar production will increase in the current period, the association has urged the government to increase customs duty again to ensure self-sufficiency and secure payment to farmers. “In the name of legal imports, illicit sugar has entered the market, which is pushing the industries into economic crisis,” Agarwal added.

Drawing the attention of the government to take necessary steps to secure the future of the sugar industry and in the interest of farmers, the association has pointed out the need of active initiatives.