ISLAMABAD: The sugar mills have sold 2.47 million tonnes of sugar worth Rs174 billion from December 2020 to May 2021 during the last season.
As per sales tax returns, sugar mills declared Rs70.42 per kg as average ex-mill sale rate, Rs1 per kg distribution cost, Rs4 per kg transport, packing and retailer margin and Rs17 per cent sales tax in tax returns.
The government thinks that the maximum retail prices, including profits, should be Rs88.24 per kg despite the fact mill owners are not willing to lower prices to fair levels voluntarily, documents state.
Documents further reveal that the price of sugar has been on the rise since January 2021, when the average retail price was Rs90.06 per kg whereas the average retail price was recorded Rs100.70 per kg on July 8, 2021 and is still showing an upward trend.
The Ministry of Industries and Production, after taking into confidence the sugar mills association, notified Rs88.24 per kg maximum retail prices of sugar, including transportation and packing charges.
The provincial authorities and ICT have been directed to implement this order and to take action against mills, dealers, distributors and retailers who do not comply.
Moreover, a weekly compliance report shall also be filed by authorities in the provincial and federal jurisdiction.
