Rupee devaluation and hike in taxes impact sugar prices: PSMA

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Islamabad: The depreciation of the rupee and increase in the sales tax has led to the rise in prices of sugar in Pakistan, said the Pakistan Sugar Mills Association (PSMA).

The sugar prices in the country continue to increase since 2017-18. According to PSMA, there are several reasons for price rise including rupee depreciation and an increase in sales tax from 8% to 17%. PSMA also states that the increase in the discount rate from 7% to 13.25% leads to a hike in sugar prices.

The report noted that it is a common practice that when the fall in production is evident, interruption in sugarcane supplies became regular a phenomena by the farmers in an effort to increase the sugarcane prices and in spite of all the stoppages, the industry is bound under the Sugar Factory Control Act to continue its crushing.

 

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