Lahore: In a recent statement, a spokesperson for the Pakistan Sugar Mills Association (Punjab Zone) (PSMA) announced that ex-mill sugar prices have remained within the government’s declared limit of Rs140 per kg, reported The Tribune.
This compliance was confirmed during the Cabinet Committee on Monitoring of Sugar Export meeting on August 1, 2024, and was subsequently endorsed by the Ministry of Industries and Production after verification from provincial governments. The PSMA assured that all sugar mills have adhered to the commitment given before the government’s final approval for exporting 0.15 million tonnes of sugar.
The spokesperson pointed out that the net impact of the withholding income tax under section 236G of the Income Tax Ordinance 2001, which was recently increased by the federal government to Rs2.52 per kg, must be added to the ex-mill price benchmark.
Despite facing significant financial losses due to increased production costs and the burden of maintaining surplus stocks, the sugar industry is working to meet the expectations of the government, local consumers, and sugarcane farmers. However, these ongoing and substantial losses are becoming increasingly difficult for the industry to manage.
The PSMA has renewed its request for the government to permit the early export of 1.5 million metric tonnes of surplus sugar, with only 60 to 90 days remaining before the next crushing season begins. The association emphasized that clearing surplus stocks is crucial to make space for the new season’s production. Any delay, they warned, would harm both the industry and farmers and deprive the country of much-needed foreign exchange. A timely decision would enable the sugar industry to meet local demand and contribute to the country’s agricultural and national economy through the export of surplus sugar.
