Ex-mill sugar price fixed at Rs165/kg as govt, industry reach agreement
The federal government and the sugar industry have reached an agreement to set the ex-mill price of sugar at Rs165 per kilogram, aimed at providing relief to consumers amid surging market rates, Express News reported.
According to a statement issued by the Ministry of National Food Security on Monday, the agreement follows successful negotiations with sugar mill owners. The ministry affirmed that all provincial governments will now be responsible for ensuring the availability of sugar to the public at the newly fixed rate.
Currently, sugar is being sold at prices as high as Rs200 per kilogram across various parts of the country. Authorities blame the steep prices on alleged collusion among influential actors in the sugar sector, often referred to as the 'sugar mafia,' which is accused of hoarding and manipulating supply to inflate prices.
In response to the crisis, the federal government had previously announced a temporary removal of import taxes on sugar in an effort to bring down domestic prices. However, the impact of this measure has yet to be reflected in market rates.
The Wholesale Grocers Association has criticised the import-based approach and instead urged the government to take strong action against hoarders.
They have called for warehouse inspections and crackdowns on illegal stockpiling, arguing that such enforcement could significantly reduce sugar prices in the local market.
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