Sugar Prices Up by Rs 2 per kgHome

The price of sugar up by Rs 200 per quintal, or Rs 2 per kg, following the decision of the Cabinet to impose 11 per cent tax on sugar coming into Punjab from other states. The price of sugar (price at factories) in various parts of the state increased from Rs 2,710-Rs 2,740 per quintal till yesterday, to Rs 2,910-Rs 2,940 per quintal.

The retail price of sugar, too, saw a jump immediately, even though the government is yet to issue a notification or bring an ordinance for the imposition of this tax. In the retail market, the prices of sugar too saw a jump of Rs 2 per kg, with prices going up to Rs 30-Rs 34 per kg, in various cities across the state. Industry sources point out that the prices have been increased by unscrupulous sugar traders, who had hoarded sugar and after yesterday's announcement started selling sugar at a hiked price.

The state's move to impose entry tax was based more on the concern for the nine cooperative and the seven private sugar mills operating in the state. These sugar mills are running in huge losses and have unpaid dues amounting to almost Rs 700 crore, after Punjab increased its State Advised Price (SAP) on cane to Rs 295 per quintal for the recently concluded cane crushing season. With just 9.5 per cent sugar recovery from cane, the sugar mill owners in the state were claiming that the cost of production of sugar was around Rs 3,500 per quintal. Against this, the price of sugar in the open market was just Rs 2,800 per quintal.

Source: http://www.tribuneindia.com/