Smuggling in of sugar on the rise

Post Report

BIRGUNJ, Nov 5 - Owing to low price of sugar in India and open and unrestricted border, the smuggling in of Indian sugar is on the rise.

It is said that around 200 bags of sugar is being imported illegally from different points of Nepal-India frontier into Parsa district per day. Government officials also say that the smuggle in of sugar from India is increasing.

Talking to The Kathmandu Post, Chief District Officer (CDO) of Parsa, Dolakh Bahadur Gurung said, "On the basis of seizure of sugar, we can say that sugar is being smuggled in".

Though the price difference is just two rupees, sugar is being smuggled despite our effort to stop such unlawful import of goods, he said.

"The 35 kilometre long open border with India of this district has also made it difficult to control the smuggle, yet we are doing our best to control smuggling", he said.

An inspection team led by CDO Gurung recently confiscated 10 bags of smuggled sugar  in ward no. 12 of Birjung Municipality.

Government has imposed 40 percent customs duty on the import of sugar, which has discouraged legal import of sugar, giving rise to smuggling in of sugar. 

Economy, finance and market

By Supa Upadhyay

Domestic money market:

The Average Weighted Discount Rate of 91-day Treasury Bills (TBs) rose marginally by 5 basis points to 5.28 percent. The NRB had received only 9 bids worth NPR 850 million against the notified amount NPR 751 million. The rupee was traded higher at 98.71 and lower at 98.69. In the regular weekly auction, the NRB is going to issue 91-day TBs worth NPR 6.670 million on November 7, 2000.

Domestic capital market:

Despite a week opening the index gained strength during the consecutive days. The NEPSE index-100 opened lower at 471.55 from the previous week's close of 476.90 further fell to 468.76 in the second day but it improved in the remaining days and closed at 475.43 for the week, netting a loss of 1.47 point. Trading was estimated at 86807 shares valued NPR 72.6 million compared to 13143 shares valued NPR 61.5 million of previous week. Commercial banks, productive sector and finance sector shared 76.52 percent, 14.80 percent and 4.58 percent respectively of total traded amount. This week, the index of commercial banks, production sector finance/insurance sector and other sector improved while hotel sector lost. Business sector remained unchanged. This week, brokers had quoted the prices of 43 companies on the trading board but only 39 companies were traded. Out of thirty-nine traded companies, sixteen companies improved, twelve companies lost and other eleven traded companies remain unchanged at their previous prices. Bottlers Nepal (T), Nepal Bank Ltd and NIC Bank registered first, second and third most traded company trading 15197, 14056 and   11960 shares respectively. Share of Nepal Bank Ltd, Nabil Bank, Nepal Grindlays Bank, Himalayan Bank, Nepal SBI Bank, Nepal B'desh Bank, Bank of Kathmandu, NIC Bank and Taragaon Regency Hotels were able to trade in all five working days. Likewise, NIDC Capital Market and Necon Air were only able to trade in four working days.

Forex round-up:

The euro improved significantly against the US dollar after the recent intervention by ECB. The ECB intervened in foreign exchange market on Friday owing to its concern about the global and domestic repercussions of the exchange rate of the Euro, including its impact on price stability. The ECU in its statement reiterated that the Euro's current level did not reflect strong euro zone fundamentals. The INR lost another 31 paisas on large dollar demand by commercial banks. The NPR also dipped by 30 paisas against the dollar over the week.