Published On: Thu, Aug 10th, 2017
Published in Category: Lahore

PSMA strongly lamented minister’s statement regarding probing in sugar price

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Lahore: Pakistan Sugar Mills Association (PSMA) has strongly lamented the statement of Federal Finance Minister asking for probing in sugar price.Spokesman of PSMA has said that the association would like to clarify that due to glut like situation in Pakistan and lack of permission of export of sugar prices touched the lowest ebb due to over-supply in the market resultantly the price declined to a level of Rs. 45-46 per kg which can never to considered a bench mark.

He said, as a matter of fact the Federal Government has itself fixed an assessable price of sugar at Rs. 60/ per kg which means that sale price of sugar should be Rs. 66/ to retrieve the amount of sales tax. It is important to note that sugarcane price is fixed by provincial governments and price of sugar is left at the mercy of market forces.

He said that federal government itself has failed to support the export of sugar while the counry was in dire need of foreign exchange and there is still a huge amount of growers payable. Federal government despite the fact that surplus quantity of sugar was available allowed only 425, 000 tons of sugar when price of sugar was high in the international market, he reiterated.

He said the industry could have easily disposed of without seeking any rebate. Now after bout three months time and recommendations of sugar advisory board to allow export of 1.2 million tons of sugar only 300,000 tons of sugar was allowed by Economic Coordination Committee of the Cabinet and that too without rebate.

Now that international market price is at a level of US$380 per ton it is important to dispose of the surplus sugar with rebate form the government in view of fixed price of sugarcane by the government.

He said that Federal Finance Minister should also ask for cost of production of sugar mills before making any negative statement. The entire stock of sugar industry is pledged with banks and at the current level of prices due to glut-like situation it is impossible to de-pledge the stocks and deceiver to the customers. We therefore seek remedial steps from the federal government instead of criticism by the Federal Finance Minister.

Spokesman of PSMA said that we are heading towards another bumper year and we foresee the sugar industry eill not be able to pay to the growers in the absence of coherent sugar export policy.}}

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