The government has imported the most expensive sugar in Pakistan’s history for the Utility Stores Corporation, The Express Tribune reported.
The Trading Corporation of Pakistan (TCP) paid Rs. 109.90 per kilogram (kg) for total imports of 28,760 metric tons of sugar. Last year, the TCP paid Rs. 89.26 per kg for 100,000 tons of sugar.
Utility stores will receive sugar at around Rs. 123 per kg, after adding other expenses.
The government had determined that the ex-mill cost of sugar produced should be Rs. 84.75 per kg.
This means that imported sugar will be Rs. 25.15 per kg expensive than that of sugar produced at the ex-mill rate, and that utility stores will receive sugar at Rs. 33.25 per kg more than the official rate.
However, the government has decided that the imported sugar will be subsidized and sold at Rs. 85 per kg.
The Economic Coordination Committee (ECC) had approved the import of 50,000 metric tons of sugar in three separate tenders, in order to ensure and bolster stockpiles in the country.
Finance Minister Shaukat Tarin said in a recent press conference that wheat would be sold at a rate of Rs. 1950 per 40 kg, while sugar would be sold at Rs. 89.75 per kg.
“We are trying to revive price control committees which will benefit the common man,” Tarin said. “Strategic reserves of essential commodities are also being built to ensure price stability and prevent profiteering and hoarding.”
He added that urban and rural food inflation had eased to 9.1 percent and 10 percent, respectively.
“Prices of consumer goods have risen all over the world,” Tarin said. “Food and beverage prices have increased less in Pakistan as compared to the rest of the world.”
Last month, the ECC was told that current sugar reserves, which stood at 1.18 million metric tons, will be exhausted by the end of October.
Meanwhile, on Monday, the TCP also issued an international tender to import 640,000 tons of wheat, the submission deadline of which is 29 September.