Punjab notifies rates: Sindh, KP governments may be asked to fix sugar price at Rs70/kg

The Ministry of Industries and Production (MoI&P) is likely to write letters to governments of Sindh and Khyber Pakhtunkhwa to set price of sugar at Rs 70/kg as has been notified by the Punjab government.

The decision was taken Wednesday at a meeting of Sugar Advisory Board (SAB) presided over by Prime Minister's Advisor on Commerce, Textile, Industries and Production and Investment, Abdul Razak Dawood. Secretary MoI&P, Aamir Ashraf Khawaja and representatives of provinces and Sugar Mills Association (PSMA) attended the meeting.

The agenda of the meeting was to review the overall availability and stock position of sugar, remaining stocks from crushing season 2018-19, expected production from crushing year 2019-20, expected consumption for crushing year 2019-20 and expected surplus/shortage situation at the end of crushing year 2019-20. The profit margins of sugar mills also came under discussion.

The meeting discussed price, starting from the sugar mill to the retail level in detail. In the last meeting, sugar mill owners had asked the government to put pressure on retailers.

The meeting was informed that wholesale sugar price has increased by 32 percent during the last one year from Rs 55.20 per kg to Rs 72.70 per kg.

One of the participants told Business Recorder that the meeting was informed that Punjab government has fixed retail price of Rs 70 per kg across the province whereas price in other provinces are still on the higher side.

It was decided that Mo&IP will write letters to other provinces for fixation of retail price of sugar at par with Punjab.

It was also revealed that the Punjab government has not yet fixed sugarcane price for the year 2019-20 but it is expected that it will be done in a couple of days.

According to an official statement, Advisor to Prime Minister on Commerce, Textile, Industries and Production and Investment reminded provinces that it is the government's priority to ensure supply of sugar to masses at affordable rates. He also asked sugar mill owners to ensure payment to growers as during the last season growers were not paid fixed price on time.

The meeting was informed that with availability of surplus sugar, prices have stabilized throughout the country.

The meeting also discussed the possibility of raw sugar import from China for re-export purposes. Advisor stated that Africa and Afghanistan are big markets of sugar, asking the mill owners to enter these markets. New Sugar Policy also came under discussion.

Copyright Business Recorder, 2019