‘South bloc’ in geopolitics and great power rivalry
All G7 member-states are members of G20, while China is at the center of G77. Of the BRICS nations, President Luiz Inacio Lula da Silva of Brazil was the only head of the state and the government present at the Havana G77 summit whereas South Africa sent a cabinet minister for the summit. More than 100 countries, including 30 heads of state and government and those aligned with the Non-Aligned Movement, were present at the summit of the grouping that has 18 of the 25-member Shanghai Cooperation Organisation, observer states or dialogue partners as members in addition to seven of G20 member-states.
The UN Secretary General Antonio Guterres participated in the recent summits of BRICS, G20, G77 and the 78th UN convention. Guterres’ emphasis was on a new global order with increased participation from the Global South in the global governance system.
Guterres has asked G20 to assume leadership on two fronts: Emission reduction and climate justice. Eighty percent of emissions is from G20 countries, he pointed out, stressing the need for the latter to reduce emissions and build resilience in communities suffering the impacts of climate change.
“This multiplicity of summits reflects the growing multipolarity of our world,” Guterres observed ahead of the Havana meeting and warned, “Multipolarity could be a factor in escalating geostrategic tensions, with tragic consequences.”
At the G77 summit in Havana, pointing to climate and foreign debt, he articulated that the Global South was “trapped in a tangible global crisis.” The world is failing developing nations, he said, describing the grouping as “a champion of multilateralism”. Guterres stressed that G77 should “champion a system rooted in equality that is ready to reverse the injustice and neglect of centuries and deliver for all humanity and not only for the privileged”.
China stated that it “will always make South-South cooperation a priority” in its dealing with the outside world. Cuban President Miguel Diaz-Canel, the chair, said, “After all this time that the North has organized the world according to its interests, it is now up to the South to change the rules of the game.”
In the realm of international relations and global governance, the roles of India and the US in the G20 and China in the G77 have significant implications. Fostered by G77, the ‘South bloc’ challenges traditional great power dominance and undertakes collective action to shape global politics. As India, the US and China navigate these blocs, their actions influence geopolitics and contribute to the ongoing dynamics of great power rivalry. Understanding these dynamics is critical for policymakers and scholars seeking to comprehend the changing landscape of international relations.
The US holds significant political influence within the G20 by virtue of its long-established global leadership and diplomatic reach. India has emerged as a voice representing developing nations and brings its unique political perspective to the forum. The US and India bring their distinct foreign policy priorities with connectivity and North-South cooperation. The US focuses on maintaining its global dominance and shaping the international order, while India emphasizes multilateralism, inclusivity and regional stability.
China pursues a distinct political strategy within the G77. Its active role, along with economic support, allows it to garner political influence, further reinforcing its position within the bloc. China seeks to promote its vision of development, connectivity and cooperation among developing nations through G77. Chinese foreign policy objectives concentrate on strengthening ties with these nations, including shaping economic relationships and securing access to resources
Sugar price soars ahead of festival season
The rise in the price of sugar has hit the customers hard. Just two weeks ago, sugar was available in the market at Rs 105 per kilogram, but it has now skyrocketed to Rs 140. Moreover, sugar has become scarce in stores, resulting to black marketing.
The Department of Commerce has sealed the largest sugar warehouse in Kathmandu over alleged black marketing activities.
The warehouse belonged to Griheshwori Tradelink, and it had been storing sugar under artificial storage with unclear labeling.
Anandraj Pokhrel, information officer at the department, confirmed the warehouse’s closure and said that the sugar was sent for quality testing.
A complaint was filed with the department, accusing the businessperson, Santosh Khetan, of buying sugar at a low price from industries and selling it at a higher price in Kathmandu without proper invoices. Khetan was allegedly billing the sugar at only Rs 105 per kilogram after selling it at Rs 127 per kilogram wholesale.
“The report submitted by the Department of Food Technology and Quality Control states that the quality of the sugar has no problem. But as there are no packaging details, we have sent a letter to the producers asking for clarification,” said Pokharel.
Rajeev Shrestha, a tea shop owner, has not seen such a rise in sugar prices. He said that he had been paying Rs 25 extra for sugar because of the price hike. “Despite the price hike, I have to run the business in order to get by,” he said.
Sugar ban likely
India is expected to ban sugar mills from exporting from October, making the first halt in export in seven years. The decision is led by a lack of rain that has cut cane yields, according to Reuters.
India allowed mills to export only 6.1m tons of sugar during the current season to Sept 30, after letting them sell a record 11.1m tons last season. India’s sugar production could fall 3.3 percent to 31.7m tons in the 2023/24 season, as per Reuters.
In India, sugar prices rose by more than three percent in a fortnight. Monsoon rains in the top cane growing districts of the western state of Maharashtra and the southern state of Karnataka—which together account for more than half of India’s total sugar output—have been as much as 50 percent below average so far this year. Patchy rains would cut sugar output in the 2023/24 season and even reduce planting for the 2024/25 season.
Trading Economics, an IT service and IT consulting service provider based in New York, reports that insufficient rainfall in India’s key producing states exacerbated poor growing conditions for next season’s crop. The current drought added to concerns that El Nino will extend dryness for a prolonged period, driving cane yields to slump and potentially prompting the Indian government to limit sugar exports for the upcoming season, as it attempts to contain elevated food inflation in the country.
Rising demand of sugar
As the Dashain and Tihar festivals are approaching, the demand for sugar has started increasing. The consumption of sugar increases for households and industries ahead of the festival.
Therefore, in view of the upcoming festivals, the Ministry of Industry, Commerce and Supplies has asked the Finance Ministry to waive customs for importing 60,000 tons of sugar to meet the demand. The finance ministry has, however, given permission to import only 20,000 tons for the time being.
Salt Trading Corporation (STC) and Food Management and Trading Company are set to import 10,000 tons of sugar each for the upcoming festival season. Pokhrel said the procurement process has already started.
Nepal’s domestic demand for sugar stands at 300,000 tons and it needs to import a huge quantity of sugar mainly from India. There are 12 sugar factories in Nepal that produce around 100,000 tons of sugar.
The country immediately has 188,000 tons of sugar in stores. The government has slashed the import duty by half to provide relief to consumers. The usual import duty on sugar is 30 percent and there is another 13 percent VAT.
Decline in sugarcane production
There has been a continuous decline in sugarcane production in the country. As per Statistical Information on Nepalese Agriculture published by the Ministry of Agriculture and Livestock Department, the production of sugar has been constantly declining over the past four years.
The ministry says production has been falling due to high costs and increasing market risk. Difficulties in getting payment from the mills and chemical fertilizer have discouraged farmers from planting the cash crop. Heat waves, untimely rains and depleting water level have also affected the sugarcane production, leading to disruption in demand and supply curve.
A host of factors such as weather, supply and demand, health concerns and consumer preferences affects the price of sugar.
Jyoti Baniya, a leading consumer rights activist, said the surge in sugar price has affected businesses and households alike. “As the festivals are nearing, the rise in sugar price and its shortage will make it difficult for people to purchase this essential item,”
The Consumer Protection Act 2018 states that every consumer has the right of easy access to goods or services and has the right to choose quality goods or services at the fair competitive price. But the access to sugar consumption is not so.
If the government fails to inspect and meet the demand and supply of sugar, it is likely that the price will continue to rise.
ApEx salutes 50 pioneers
The Annapurna Express, an English daily of Annapurna Media Network, has honored 50 pioneering personalities through its special annual program ‘Salute’. Those who have contributed in various fields have been honored with medals and certificates.
The personalities who were honored are national and international economic, social, political, sports, medicine, social service, financial sector, entertainment, business and space sector.
Captain Rameshwar Thapa, Chairperson of Annapurna Media Network said that the responsibility of the media is to promote positive issues and said that the ApEx will continue to respect and honor such top people.
He further said, “Our responsibility is not limited only to conveying news. Those who have made a significant contribution to society should be appreciated. In the current situation where negativity is mostly highlighted, honoring positive work is a challenge.”
The chief guest of the event, former President Bidya Devi Bhandari, praised Annapurna Media Network for honoring personalities who have done commendable work in various fields of national life.
A book containing the journey, experience and profile of 50 pioneers was also released at Monday’s event. The book titled ‘Apex Pioneer, The Changemakers of Nepal’ was launched by former President Bhandari and Chairperson Thapa.
Kamal Dev Bhattarai, Editor of The Annapurna Express, said that he was proud to appreciate the inspirational work of personalities who fill the society with positive energy. According to him, last year the top visionaries were honored and the next year the top planners will be motivated through a similar program.
Chief Executive Officer of Annapurna Media Network, Sanat Neupane, said that Annapurna has succeeded in continuing the image of not only writing news but also honoring individuals who work uniquely in their field.
Here are the honored pioneers:
Anupama Khunjeli
Anuradha Koirala
Ashesh Malla
Baburam Bhattarai
Baikuntha Manandhar
Bal Krishna Joshi
Basanta Raj Mishra
Bhairab Risal
Bharat Pokharel
Bhinda Swari Shah
Bhuwan Chand
Binod Chaudhary
Bishnu Maya Pariyar
Buddhi Narayan Shrestha
Capt Siddhartha Gurung
Devendra Raj Pandey
Dr Bhagawan Koirala
Dr Kumud Dhital
Dr Ram Kantha Makaju
Dr Sanduk Ruit
Durga Baral
Gagan Pradhan
Ghanashyam Gurung
Harry Bhandari
Himalaya Shamsher JBR
Jhamak Ghimire
Kanchha Sherpa
Kiran Manandhar
Kulman Ghising
Mahabir Pun
Mahesh Acharya
Mallika Shakya
Manjushree Thapa
Min Bahadur Gurung
Mukesh Chalise
Neer Shah
Pawan Golyan
Rabindra Puri
Ram Dayal Rakesh
Ram Kumar Panday
Ramesh Sherpa
RP Pradhan
Shyam Goenka
Suresh Raj Sharma
Tulsi Ghimire
Uday Raj Khanal
Upendra Mahato
Usha Nepal
Uttam Sanjel
The petro trap and the way out
How many times has the government hiked the prices of petroleum products, say, in a year? Well, we the people have lost count of it. This time also, the government hiked fuel prices citing the price list from the Indian Oil Corporation, the sole supplier of petroleum products for Nepal, only to retract the unpopular decision owing to pressure from the Parliament and outside.
If the government had its way, cooking gas would have become dearer by around Rs 215/cylinder, petrol by Rs 2/liter, diesel and kerosene by Rs 6/liter and air turbine fuel by Rs 8/liter, that too at a time when people have been grappling with economic hardships, thanks to domestic factors like the absence of the rule of law, market regulation, political instability, unbridled corruption and the Russia-Ukraine war that has been wreaking havoc on the global supply chain.
Against this backdrop, Devendra Gautam of ApEx talked with a number of people from different walks of life to know if steep oil and gas prices are indicative of a petroleum trap that Nepal is finding itself sinking deeper and deeper in, like in quicksand. Here’s what they had to say:
Pushkar Karki, Spokesperson, NOC
The sole supplier of fossil fuel and cooking gas to Nepal, Indian Oil Corporation, sends the price list of diesel and petrol to NOC every fortnight. It sends the price list of cooking gas, air turbine fuel and kerosene every month. Let me clarify a thing: NOC does not even get a penny from the sale of cooking gas, petrol fetches it a 2.5 percent profit margin whereas diesel and kerosene yield two percent profit.
Any surge in oil and gas price in the international market causes a surge in Nepal as well. In times of an economic slowdown, such a hike only adds to the public’s woes, especially when major festivals are approaching.
Prabha Dawadi, Homemaker
A price hike hits every sector of life. From the kitchen to children’s education, every aspect suffers. The lack of domestic production is mainly behind rising inflation. The government should focus on increasing the production of food and other essentials within the country to rein in soaring market prices.
Ratna Sansar Shrestha, Researcher
Frequent hikes in the prices of petroleum products are part of a design to make Nepal completely dependent on a monopoly supplier. India’s decision to not buy hydropower generated from Nepali projects developed with Chinese investment and make Nepal completely reliant on its petroleum supplies does not bode well for Nepal. However, our political leadership does not have the spine to oppose such a sinister design against Nepal. The leaders should mend ways.
Sagun Sunder Lawoti, Spokesperson, Rastriya Prajatantra Party
The government has failed the country and the people on multiple fronts. It has been unable to deal with challenges both external and internal, it has failed to ensure law and order.
An elected government is supposed to be accountable to the people, it is supposed to be responsive. But this government lacks vision and is rudderless. This mess is one of the indicators of polity failures.
As a responsible opposition party, we have been trying to make the government take corrective measures to arrest this slide and will continue to do so in the coming days.
Binita Gautam, School teacher
A hike in fuel prices causes food prices to shoot up. Such a hike only deepens the existential crisis of the people as no sector is left untouched.
Ganesh Parajuli, Lawmaker, Rastriya Swatantra Party
A hike in fuel prices only increases the woes of Nepali people. The government should find ways to protect the people from the shocks of fuel price hikes instead of justifying such a hike citing price escalations in the international market. We (RSP) are discussing this issue within the party fold in a bid to work out ways for dealing with it.
