ISLAMABAD: Acceding to pressure of powerful sugar millers, the government allowed on Tuesday the sale of sugar at over Rs55 a kg in the open market and suspended a crackdown on millers and traders.
Although the government fixed the ex-mill price of sugar at Rs48 per kg in Sindh and Rs49.75 in Punjab and the NWFP, the retail price will be Rs55.68 in Sindh and Rs57.71 in Punjab and the NWFP after levying 16 per cent general sales tax (GST).
The price for consumers will further increase to about Rs60 after inclusion of the wholesale profit margin and transportation cost.
The decisions were taken at a six-hour meeting of the Pakistan Sugar Mills Association (PSMA) with the ministry of industries.
The price of sugar two months ago was Rs36 a kg. Industries Minister Manzoor Wattoo told a press conference that provinces had been asked to stop action against millers and hoarders which, according to him, disrupted the supply chain.
He said the provinces had been asked to help millers restore supply of sugar in the
market.
He said imported sugar would cost Rs65 a kg. The minister did not mention the ex-mill price for Balochistan.
Under an agreement, millers would provide 10,000 tons of sugar to the Punjab government at Rs40 a kg, he said.
He said the federal government would appreciate similar arrangements by other provinces with millers.
It was agreed that millers would offload 200,000 tons of sugar in the open market in Ramazan.
Mr Wattoo said the Tandlianwala and other mills had started supplying sugar to the Trading Corporation.
Presiding over a meeting on hoarding of essential commodities earlier, Prime Minister Yousuf Raza Gilani ordered the industries ministry to ensure availability of sugar in the market.
He called for stern action against hoarders and profiteers of essential items, including sugar.
The prime minister suspended the 25 per cent regulatory duty on import of potatoes.
It was decided that 300,000 tons of raw sugar would be imported to meet the shortfall in the next season.
The meeting was told that all provincial governments had appointed special price magistrates.
The prime minister ordered monitoring of prices on a weekly basis during Ramazan.
The economic coordination committee (ECC) had approved the waiver of the duty on import of potatoes on the directives of the prime minister.
ID CARD WAIVER
At a meeting presided over by Finance Minister Shaukat Tarin, the committee also waived the condition of presentation of national identity card for purchasing items from utility stores.
It approved an increase in the Utility Stores Corporation’s quota of essential commodities.
It was decided that the USC would sell 100,000 tons of sugar at Rs38 per kg during Ramazan instead of the normal 40,000 tons per month. It will be equivalent to one-third of the national consumption.
The additional sugar will be released from imported stocks. As part of the Ramazan package, the quantity of flour to be sold at a discount of Rs2 was increased from 100,000 tons to 150,000 tons. Sale of ghee and oil at Rs91 per kg — a discount of Rs20 — will be increased from 30,000 tons to 50,000 tons.
It was decided that a third-party inspection team would conduct random checks at utility stores for prices, availability and quality.
Services of the National Logistics Cell will be acquired for transporting the commodities.
The meeting was informed that the price of sugar in India, Bangladesh, Afghanistan and Iran was Rs50, Rs57, Rs52 and Rs56, respectively.
It decided that the federal and provincial governments would evolve a joint mechanism for stabilising prices and keeping a check on hoarding.
The federal and provincial governments will hold Sunday, Friday and Ramazan bazaars and the USC will set up mobile outlets there.
The ECC also approved the implementation of a combined cycle project at Guddu by Genco-II under the management of the Pakistan Electric Power Company at the engineering, procurement and construction cost of $602 million.
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