ISLAMABAD: The Pakistan Sugar Mills Association has rejected the ex-mill and retail price of sugar fixed by the federal government.
The mill owners have challenged the government’s decision regarding the rates of the commodity in the Appellate Committee, a local TV reported on Sunday.
They were of the view that they could not sell sugar –which cost them at 115 to 120 rupees per kilogram – for less than 100 rupees. They warned of moving courts if the Committee rejected their appeal.
It is to be noted that the government, in response to the unprecedented 30% surge in retail sugar rates within a matter of weeks, set the retail rates of sugar at 98.82 rupees per kg.
The rate of sugar includes Sales Tax at 14.58 rupees per kg, a profit margin of 5.30 rupees, and a distributor’s margin of 25 paisa per kilogram. The transport cost is 2 rupees per kg, and the retailer’s profit is Re1 per kilogram.
Government’s notification on sugar prices
A government notification stated after reviewing the data provided by the provinces and information by other government agencies, the Controller General of Prices has set the maximum retail rate of locally produced white crystalline sugar at 98.82 rupees/kg, at which it shall be made available to the public. The ex-mill rate maximum is 95.57 rupees per kg, inclusive of sales tax.
