Govt 'fails' to convince millers to lower sugar prices

ISLAMABAD: Pakistan government has reportedly failed in convincing millers to lower sugar prices ahead of the holy month of Ramazan, ARY News reported on Wednesday, citing sources.

As per details, the Pakistan government is trying to lower the sugar prices, but millers are not interested, the sources said.

Currently, the sugar is being sold at Rs155 per kg, but the government wants to lower the prices of the commodity to Rs120 per kg. However, the sugar millers are of the view that the per kg cost of the commodity is Rs170.

They further say, the sugar millers demanded that the government should abolish 18 per cent General Sales Tax (GST) on sugar as this is the only way to lower the prices by Rs25 per kg.

As the majority sugar mill owners are currently in Dubai, the Pakistan government has asked the millers for the final word on the sugar price by Friday.

It may be noted that provincial governments have not fixed the support price of sugarcane this year due to demand of the International Monetary Fund (IMF).

Read more: Pakistan sugar exports to Afghanistan surge by 4332pc

Meanwhile, Pakistan’s sugar exports to Afghanistan recorded a whopping increase of 4332% in the first seven months of FY 2024-25.

According to the official figures, from July to January, Pakistan’s sugar exports to Afghanistan reached $262.68 million compared with $5.93 million during the corresponding period in 2023.

Pakistani sugar exports to Afghanistan increased by $256.76 million Year-Over-Year (YOY). This massive increase has made sugar the largest contributor to Pakistan’s exports to Afghanistan.