Sale of sugar at USC: Govt set to offer Rs3.5bn subsidy

RECORDER REPORT

LAHORE: The government is all set to offer Rs 3.5 billion subsidy on sugar to be sold at Utility Stores Corporation (USC) at Rs 42 per kg against market price of Rs 48 per kg.

According to industry circles, the government was going to offer such a huge subsidy when public sector entities including Pakistan Steel Mills (PSM), Pakistan International Airlines (PIA) and Pakistan Railways were closed and the textile industry had almost collapsed due to severe energy crisis.

The government had procured 350,000 tones sugar through TCP at Rs 50 per kg to ensure timely payments to growers. Now the government was offloading same sugar to the market through USC at Rs 42 per kg, incurring a huge loss in terms of subsidy. There was a possibility that the sugar industry would produce over 5 million tons sugar by the end of current crushing season.

Talking to Business Recorder, the industry circles said the government's decision to sell procured sugar at low price was not a wise decision.