Govt pays record high price for importing sugar

The federal government has imported the ‘most expensive’ sugar in the history of the country for Utility Stores.

According to a report by The Express Tribune on Monday, A consignment of 28,760 metric tons of sugar imported by the Trading Corporation of Pakistan (TCP) has reached the country. The TCP paid Rs109.90 per kg for the imported sugar at the port. In comparison, last year the land cost of 100,000 tons of sugar was Rs89.26 per kg.

Adding all the expenses, the Utility Stores would receive sugar at around Rs123 per kg.

The government has fixed the ex-mill rate of sugar produced in the country at Rs84.75 per kg. Therefore, the imported sugar would be Rs25.15 per kg more expensive than the official ex-mill rate.

Article continues after this advertisement

The Utility Stores would receive sugar at a higher cost of Rs33.25 per kg than the official rate.

According to the government’s decision, the imported sugar would be sold at Rs85 per kg at Utility Stores and the difference between the purchase price and sale would be met through subsidy.

On Monday, the TCP had also issued an international tender to purchase and import 640,000 tons of wheat. The deadline for submission of price offers in the tender is September 29.

The Economic Coordination Committee (ECC) of the cabinet had recently approved the import of 50,000 metric tonnes of sugar to maintain sufficient stock in the country.

Last month, the ECC had held discussions on the import of sugar after they were informed that the current sugar reserves stood at 1.18 million metric tonnes, which will be exhausted by end-October 2021.

- Advertisement -


Please enter your comment!
Please enter your name here

- Advertisement -

Must Read

PSX closes flat in range-bound session amid lack of triggers

KARACHI: The Pakistan Stock Exchange (PSX) witnessed a range-bound session on Wednesday, with the benchmark KSE-100 Index shedding 6.62 points (-0.02 percent) to close...