In order to ensure market stability and affordability for consumers, Deputy Prime Minister (DPM) and Foreign Minister Ishaq Dar on Friday reaffirmed the government's commitment to actively monitor supply and regulate sugar prices countrywide.
The DPM expressed the resolve while chairing a meeting in Islamabad on the prevailing sugar situation in the country.
During the meeting, he reviewed compliance with the agreement reached earlier and expressed satisfaction with the downward trend in price of sugar.
Dar directed the Pakistan Sugar Mills Association to ensure full compliance with the agreement for retail prices of sugar at or below Rs164 per kilogram throughout the country.
Last week, the government and the sugar sector struck an agreement, capping sweetener’s ex-mill and retail prices at Rs154 -159 and Rs164 per kg, respectively, for one month.
However, a kilo of sugar at 274 fair-price shops countrywide will cost Rs130 per kg. Dar announced this after holding talks with the PSMA, Radio Pakistan reported.
The annual general meeting (AGM) of the sugar sector was held on Tuesday, in which assent to fix the retail and ex-mill prices was granted for one month. “The retail stage price is fixed at Rs164 per kg,” said Dar, adding that the ex-mill price was worked out in the band of Rs154 to Rs159 per kg.
Earlier, the government had rejected the PSMA’s demand to fix the ex-mill price at Rs175 per kilogram and made it clear that any efforts to exploit the market would be dealt with an iron hand.
The sugar barons were planning to increase the price to Rs200 to Rs220 per kg in the domestic market a few weeks ago.
The government, in consultation with relevant quarters, assessed that the cost of production, including the sales tax, stood at less than Rs154 per kg.