Replying to a question, he said that those people who are indicating that sugar price would touch Rs 100 per kg mark are basically creating panic in the market and benefiting the profiteers. The government has already abolished GST and Excise duty on the imported sugar and sale of sugar in the local market to ensure that its procurement cost would not exceed Rs 51 per kg and sale price would not go higher than Rs 55 per kg.
Although the crushing season for 2009-10 is now in full swing, there is an increasing trend in the price of sugar for the reason that the price of sugarcane is reported to be at its all time high, ranging from between Rs 170 -180 per 40 kg and there is an upward trend in the international market.
Answering a question, Iskandar Khan said that PSMA is ready to extend all possible support to the government to deal with the sugar crisis. PSMA in a recent meeting with the Finance Ministry expressed inability to import sugar and sell it in the market unless the federal government guarantees them 'intervention-free' atmosphere-which has been a longstanding demand of sugar mill owners.
The Association was also of the view that per kilogram cost of production of sugar is Rs 68-69 and if the government pressed them to sell it at Rs 60, then this would naturally not be acceptable to the mill owners. Sources said that the meeting also discussed measures to stop sugar smuggling to Afghanistan as 80,000 tons of sugar has been transported to Afghanistan so far, the cost of which is $60 million.