Sugar mill association condemns statement on sugar exports

LAHORE: Pakistan Sugar Mills Association Spokesman has strongly condemned the statement of Pakistan Biscuits and Confectionary Manufacturers Association (PBCMA) about sugar exports, saying that the industry is only seeking to export the surplus sugar after accounting for domestic requirement both for industrial and domestic consumption. Since quantity of sugar is surplus hence it cannot be sold in Pakistan over and above the need of the consumers. The industry cannot make payments to sugarcane farmers without disposal of surplus stocks. The spokesman said the confectionary, biscuits and beverage manufacturers have never reduced their price and want to secure their raw material at rates where industry cannot break-even to pay to the farmers. The spokesman further said that 80% cost of producing sugar is the sugarcane component, which is to be paid to the farmers. Besides, FBR has fixed an assessable value of sugar at Rs60 per kg based on which the industry is obliged to pay a fixed amount of sales tax of Rs4.80 per kg on sales to registered buyers and Rs6 per kg on sales to unregistered buyers - irrespective of the current sale value.

Published in The Express Tribune, March 16^th, 2017.

Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.