The Economic Co-ordination Committee (ECC) of the Cabinet is likely to approve increase in the price of sugar by Rs 10 per kg to Rs 55 per kg at the Utility Stores Corporation (USC) outlets from current Rs 45 per kg to reduce the gap between the open market and controlled price.
The Ministry of Industries and Production (MoI&P) had recommended to the committee to increase the price of the commodity for reducing difference between prices to lower the burden of the masses at the countrywide USC's outlets. The ECC would review and allow the recommended increase in the upcoming meeting, sources told Business Recorder on Saturday.
The subsidy of Rs 27 per kg would put extra burden on the government that, too, would not deliver the desired results, as the middlemen mafia would reap the fruits of cheap sugar. They adopted that current price difference between the open market and USC was Rs 20, which was too attractive for the consumer to buy sugar from USC due to which not only burden of outlets would increase but would also prove beneficial in ending the role of middlemen from illegal sale of USC sugar in the open market.
The MoI&P had taken the decision in a meeting chaired by Federal Minister Industries and Production Hazar Khan Bajrani to review the issue of sugar availability. Secretary Industries Punjab Manzar Hayat, Secretary Agriculture Sindh Aga Jan Akhtar, Cane Commissioner NWFP and representatives of Sugar Advisory Board (SAB) were also present on the occasion.
Managing Director apprised the meeting that the demand of sugar would increase in summer season and there is a huge difference between the open market and control price of the sweetener. The MD said the current price of sweetener in the open market is Rs 45 per kg, but the price of the commodity in the open market is Rs 65 per kilogram, which resulted in increase in burden of consumer. MD requested to lower the difference of sugar prices up to Rs 10 per kilogram to Rs 15 per kilogram, but the MoI&P recommended for increase of Rs 10 per kilo.