Government has ‘failed’ to persuade millers to reduce sugar prices
The Pakistan government has reportedly struggled to persuade sugar millers to lower prices ahead of the holy month of Ramazan.
According to sources, despite the government’s efforts to reduce the price of sugar, millers remain unwilling to cooperate. At present, sugar is being sold at Rs155 per kilogram, but the government is hoping to bring it down to Rs120 per kilogram. However, sugar millers argue that the cost of production per kilogram is actually Rs170.
The millers have requested that the government remove the 18% General Sales Tax (GST) on sugar, claiming that this would be the only way to reduce the price by Rs25 per kilogram.
With many of the sugar mill owners currently in Dubai, the government has set a deadline, asking for a final decision on the sugar price by Friday.
It’s also important to note that provincial governments have not yet set the support price for sugarcane this year, a move driven by the demands of the International Monetary Fund (IMF). This situation leaves both the government and consumers in a difficult position as Ramazan approaches.
