Ex-mill Sugar Prices Not Exceeded Govt’s Declared Limit Of Rs 140 Per Kg: PSMA

Pakistan Sugar Mills Association, Punjab Zone, (PSMA-PZ) has issued a clarification regarding certain news items published in a section of media on increase in sugar prices from a benchmark fixed by the Economic Coordination Committee (ECC)

LAHORE, (UrduPoint / Pakistan Point News - 6th Aug, 2024) Pakistan Sugar Mills Association, Punjab Zone, (PSMA-PZ) has issued a clarification regarding certain news items published in a section of media on increase in sugar prices from a benchmark fixed by the Economic Coordination Committee (ECC).

A spokesman for PSMA-PZ clarified here Tuesday that ex-mill sugar prices have not exceeded government’s declared limit of Rs.140 per kg as was put up in meeting of Cabinet Committee on Monitoring of Sugar Export held on 1st August, 2024, duly endorsed and appreciated by the Ministry of Industries and Production after getting its confirmation from provincial governments. All sugar mills have fully complied with the commitment given by the PSMA before final approval of the government on export of 0.15 million tons of sugar.

He mentioned that net impact of Withholding Income Tax U/S 236G of ITO 2001 recently enhanced in the budget by the Federal government of Rs.2.52 per kg needs to be added to the ex-mill price benchmark.

He said the sugar industry despite suffering huge losses in billions due to increased costs of production of sugar and paying capital costs of keeping surplus stocks is striving hard to meet with the expectations of government, local consumers and sugarcane farmers but the recurring heavy losses to the industry are becoming unmanageable.

The PSMA reiterated its request to the government to allow early export of 1.5 MMT of surplus sugar as only 60 to 90 days are left for the next crushing season to begin and it is in the national interest to get all surplus stocks cleared so that mills have space to store sugar produced in the coming season. Any delay will not only damage the industry but farmers as well besides depriving the country from much-needed foreign exchange. Timely decision will enable the sugar industry meet local demand of sugar and keep contributing foreign exchange to the country’s agricultural and national economy by exporting the surplus, he added.