Sugar prices should not exceed Rs164 after CCP warning: Dar

Deputy Prime Minister Ishaq Dar has stated that retail sugar prices should not exceed Rs 164 per kilogram following concerns over price manipulation in the sugar market.

Dar's comments come after the Competition Commission of Pakistan (CCP) warned sugar mills against engaging in anti-competitive activities that could further inflate prices, Express News reported.

During a press briefing, Senator Dar stated that the Prime Minister had set up a committee to address the issue of sugar prices.

Despite government efforts to maintain sugar prices at Rs 130 per kg, retail prices in some markets have surged above Rs 180 per kg, causing significant concern among consumers.

Ishaq Dar explained that the government had held a late-night meeting to address the issue and find a way to ensure that the common citizen does not face prices between Rs 180 and Rs 200.

“We need to ensure that the common man can buy sugar at a reasonable price, but this requires a distribution channel and an implementation mechanism,” Dar said, adding that a subcommittee, headed by Minister for National Food Security and Research Rana Tanveer Hussain, would work until April 19 to review the situation and verify the sugar mills' claims regarding price hikes.

Dar also addressed the Federal Board of Revenue (FBR) sales tax on sugar, stating that it would be charged at Rs 154 to 155 per kilogram, with a price cap set at Rs 159.

He stressed the importance of gathering intelligence reports along with the CCP to monitor the situation and take appropriate enforcement actions.

Dar concluded that the government's efforts would focus on ensuring fair competition and protecting consumers from exploitative price hikes.

The Deputy Prime Minister also assured the public that there would be no shortage of sugar in the country, adding that 274 utility markets were supplying sugar at a price of Rs 130 per kilogram. He confirmed that the sugar crisis, if any, would be avoided.

Regarding the upcoming sugar crushing season, Dar stated that sugar mill owners would begin crushing on time, and from next year, the crushing season would start from November 1. He warned that strict action would be taken against those violating the schedule.