After the Punjab government implemented sugar cess on sugar, there has been a fear of price increase in the open market, which is causing concern among both consumers and traders.
According to sources, the government has imposed a sugar cess of Rs 5 on 40 kg of sugar, out of which Rs 2.5 will be paid by sugar mills and Rs 2.5 by farmers. This cess has come into effect from January 1.
Current situation in the market
According to trade sources, a 50 kg bag of sugar in Akbari Mandi has reached Rs 7,500, while the ex-mill rate is being reported to be Rs 6,750.
Similarly:
- Ex-mill rate: Rs 135 per kg
- Open market price: Rs 160 per kg
- Recent increase: Rs 10 per kg
Traders say that if prices were controlled, the price of sugar should have been Rs 150 per kg.
According to economists, it is natural for the burden of sugar cess to eventually be passed on to the consumer.
The Grocery Merchants Association says that currently there is ample sugar in the market, and sugar is available at general stores for Rs. 150 per kg; however, if the impact of the cess is fully passed on, prices may increase further.
Citizens say that inflation has already affected the household budget, and the increase in the price of a basic necessity like sugar will create more problems.
According to experts, if the government does not tighten market surveillance, the price of sugar could reach Rs 170 per kg in the coming days, which could lead to a new wave of inflation.
