Sugar still selling at Rs 50 per kg: Sindh millers, traders refuse to implement Prime Minister's announcement

The sugar millers and retailers of Sindh have jointly refused to implement Prime Minister Yousuf Raza Gillani's announcement to ensure ex-mill price of sugar Rs 45/kg and Rs 47/kg retail price, and continue to sell the commodity at Rs 48 and Rs 50 per kg respectively.
Some sugar mills of the province have provided sugar stocks in the wholesale market with the ex-mill rate of Rs 47/kg and the wholesalers have forwarded this kitchen item with profit of Re 1/kg to the retailers at Rs 48, which is now available to the consumers at Rs 49 and Rs 50 per kg, according to a brief survey of the city's wholesale and retail markets on Friday.
The millers, wholesalers and retailers of sugar blamed each other for unavailability of the commodity on rates announced by the prime minister on August 21 despite special relaxation of 50 percent in general sales tax (GST) to the sugar industry.
The wholesalers were of the view that due to violation of federal government decision by sugar mills they purchased sugar at ex-mill rate of Rs 47 per kilogram. It may be mentioned that the retailers, wholesalers and sugar mill owners in a meeting held in the office of Home Secretary Muhammad Arif Khan had assured the provincial government of availability of sugar to the consumer at Rs 47/kg.
All stakeholders had agreed on a single formula that the millers would provide white refined sugar to the wholesale market at Rs 44.75/kg and wholesalers would sell the subsidised commodity at Rs 45.50 for ensuring availability of sugar to the consumer at Rs 47 a kg.
The wholesalers claimed that they had purchased sugar stocks at old ex-mill price of Rs 47/kg and till end of previous stock they would provide sugar in the wholesale market at Rs 48.50/kg. As new stock of sugar reached market at the subsidised rate of Rs 44.75/kg, they would pass the commodity to the retailers with government rate of Rs 45.50/kg.
On the other hand, the retailers said that they had purchased sugar at Rs 48/kg from wholesalers and would sale the costly sugar at Rs 49 and Rs 50/kg till availability of sugar at Rs 45.50/kg. "If the millers and wholesalers are not ready to face loss of Rs 2/kg on old stocks before provincial government announcement, so why the retailers bear loss of Rs 2/kg," the retailers said.
Talking to Business Recorder, chairman of Pakistan Sugar Mills Association (PSMA) Sindh-Circle Abdul Wajid said the millers were directed to release sugar stocks with announced ex-mill rate of Rs 44.75. He expressed hope that sugar would be available at Rs 47/kg to the consumers by end of old sugar stock in the market.