KARACHI: Under the recent Sugar Policy 2013, Pakistan is likely to face sugar shortage, which will also increase its price.
Just a couple of months ahead of the elections, due to the provision by the government providing conditional relief to the sugar mills by reducing the Federal Excise Duty (FED) by 7.5 percent to 0.5 percent from 8.0 percent, the country’s stockpile would come down to around 400,000 tonnes, sources in the Federal Board of Revenue (FBR) said yesterday.
This relief has been provided to the sugar mills for supplying the commodity to the domestic market. However, a condition had been applied to avail the benefit of 0.5 percent FED - the quantity on which the facility was being provided should be equal to the quantity exported otherwise the rate of FED would remain the same at 8.0 percent.
A spokesman of Sindh Agriculture Forum said the export of more than 1.0 million tonne of sugar would create shortage besides increase the domestic prices.
According to US Department of Agriculture’s foreign agriculture department, such an act would be against the World Trade Organisation’s agriculture rules and regulations.
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