Govt decides to import another 0.5m tonnes sugar to overcome shortage

ISLAMABAD  –  The govt has decided to import another 0.5 million tonnes of sugar to overcome the shortage that resulted in massive increase in commodity price.

The government is also mulling to exempt commercial import of sugar from duties and taxes by invoking food security provisions. Officials in ministry of Industries and Production have informed that Economic Coordination Committee (ECC) of the Cabinet is likely to take up the summaries of importing more sugar and removing taxes and duties on imported sugar during current week. The ECC was supposed to take up the summaries in last week, but the meeting was postponed.

“Summary for import of 500k tonnes of sugar is being moved for upcoming ECC meeting,” said Federal Minister for Industries and Production Hammad Azhar on Twitter on Sunday. He further said that provisional estimates suggest local production of sugar will be higher than last season. “But owing to low carryover stocks, TCP, in consultation with provinces, will be advised to initiate imports early,” he added. The minister further said that provinces will be advised to release this sugar at retail stage at subsidised and control rates. “Cane commissioners have reported ample supply of sugar and sugar cane for the time being. Any reports to the contrary are fake news,” he concluded.

Sugar price has surged to around Rs100 per kg in few markets of the federal capital. Market sources are of the view that sugar price might further increase in next few days. In last month, Prime Minister Imran Khan had said sugar was being sold at a national average of Rs81 per kilogramme compared to Rs102 per kg last month. Taking to Twitter, the premier had congratulated his team for bringing down the price of the commodity through a multi-pronged strategy. Federal Minister for Planning and Development Asad Umar and Federal Minister for Industries and Productions Hammad Azhar also took to twitter to hail the PTI government’s efforts to bring down the price.

The official said that ministry of Industries and Production has recommended the ECC to exempt commercial import of sugar from duties and taxes by invoking food security provisions. The ministry in the summary has proposed that the following tax relief may be provided for commercial import of white sugar till June, 30, 2021; (i) reduction of withholding income tax on import of white sugar from 5.5% to 0.25% and; (ii) reduction of value-added sales tax on import of such sugar from 3% to 0%.