ISLAMABAD: The Pakistan government has been unable to convince sugar millers to reduce sugar prices ahead of the holy month of Ramazan.
According to details, the government is striving to bring down sugar prices, but millers remain unwilling to cooperate, sources claimed.
Currently, sugar is being sold at Rs155 per kilogram, while the government aims to reduce the price to Rs120 per kilogram. However, sugar millers argue that the production cost of sugar stands at Rs170 per kilogram.
The millers have also demanded the abolition of the 18% General Sales Tax (GST) on sugar, stating that this is the only way to achieve a price reduction of Rs25 per kilogram.
With most sugar mill owners currently in Dubai, the Pakistan government has asked them to provide a final decision on sugar prices by Friday.
It is noteworthy that provincial governments have not set a support price for sugarcane this year, reportedly due to conditions set by the International Monetary Fund (IMF).
In related news, Pakistan’s sugar exports to Afghanistan have seen an astonishing rise of 4332% during the first seven months of FY 2024-25.
Official figures reveal that from July to January, Pakistan’s sugar exports to Afghanistan amounted to $262.68 million, a sharp increase compared to $5.93 million during the same period in 2023. This surge of $256.76 million year-over-year (YoY) has made sugar the top contributor to Pakistan’s exports to Afghanistan.
