Karachi: Pakistan Sugar Mills Association (PSMA) rejected ex-mill and retail price of sugar fixed by government, according to reports received here. Sugar mill owners have challenged government decision regarding prices of commodity in Appellate Committee. As per sources, mill owners were of view that they cannot sell sugar which cost them at Rs 115 to Rs 120 per kg for less than Rs 100. They warned of moving courts if Appellate Committee rejects their appeal. It is pertinent to mention here that government in response to unprecedented 30 percent surge in retail sugar prices within matter of weeks, set retail price of sweetner at Rs 98.82 per kg.

Price of sugar includes Sales Tax at Rs 14.58 per kg, profit margin of Rs 5.30 and distributor’s margin of 25 paisa per kg. Transport cost is calculated at Rs 2 per kg and retailer’s profit is Re 1 per kg.

Government notification said after reviewing data provided by provinces and information reported by other government agencies, Controller General of Prices has set maximum retail price of locally produced “White crystalline sugar at Rs 98.82/kg, at which it shall be made available to general public”. Ex-mill price maximum is Rs 95.57 per kg, inclusive of Sales Tax.

Published in The Daily National Courier, May, 01 2023

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