Monday October 18, 2021

Costliest sugar reaches country: Govt will have to give Rs35 per kg subsidy

September 27, 2021

ISLAMABAD: A consignment of 28,760 metric tonnes of imported sugar for Utility Stores has reached Pakistan. According to a spokesperson of the Trading Corporation of Pakistan (TCP), a second shipment will also reach Karachi carrying 28,840 metric tonnes of sugar, Geo News reported on Sunday.

According to sources in the TCP, the sugar has been purchased at $637.10 per tonne. The price of tax and duty free imported sugar at the port is Rs109 per kg. The cost for Utility Stores will be more than Rs120 per kg — Rs30 per kg more than the official retail price for Utility Stores. If the government wishes to sell the sugar at Rs85 per kg at Utility Stores, it will have to give a subsidy of Rs35 per kg.

This makes the imported sugar the most expensive ever purchased. Earlier, the landed cost of 100,000 tonnes of sugar was Rs89.26 per kg. The government has fixed the ex-mill rate of sugar at Rs84.75 per kg and the retail price of sugar at Rs89.75 per kg.