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Sugar mills reject prices fixed by govt

sugar prices, sugar mills, federal government

LAHORE: The Pakistan Sugar Mills Association (PSMA) has rejected the ex-mill and retail price of sugar fixed by the federal government, ARY News reported on Sunday.

The sugar mill owners have challenged the government decision regarding the prices of the commodity in the Appellate Committee.

As per the sources, the mill owners were of the view that they cannot sell sugar – which cost them at Rs115 to Rs120 per kg – for less than Rs100. They warned of moving courts if Appellate Committee rejects their appeal.

It is pertinent to mention here that the government, in response to the unprecedented 30 percent surge in retail sugar prices within a matter of weeks, set the retail price of sweetner at Rs98.82/kg.

Read More: Sugar price reaches Rs120/kg in Karachi

The price of sugar includes Sales Tax at Rs14.58 per kg, a profit margin of Rs5.30, and a distributor’s margin of 25 paisa per kg. The transport cost is calculated at Rs2 per kg, and the retailer’s profit is Re1 per kg.

A government notification said after reviewing the data provided by the provinces and information reported by other government agencies, the Controller General of Prices has set the maximum retail price of locally produced “white crystalline sugar at Rs98.82/kg, at which it shall be made available to the general public”. The ex-mill price maximum is Rs95.57/kg, inclusive of sales tax.



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