KARACHI: The Pakistan Biscuits and Confectionary Manufacturers Association (PBCMA) has demanded of the government to withdraw the 40 percent duty on import of sugar besides withdrawing Rs 13 per kg rebate on its export to bring this commodity at the level of fair competition.
PBCMA Senior Vice Chairman Raees Ahmed said in a statement that in spite of significant decline in prices of sugar in international market, the sugar manufacturers are fast losing their export markets as they have become uncompetitive due to unjust import duty and rebate structure respectively on sugar import and export.
Moreover, he said the benefit of reduction of prices of sugar has not been passed on to the poor domestic and industrial consumers because of huge tariff protection provided by the government to the sugar industry, which is completely against the concept of fair and free competition. He also showed his dismay over the Competition Commission of Pakistan (CCP) for not taking notice of the situation.
"This state of affairs has given the sugar manufacturers an opportunity to monopolise the market of this basic commodity and also to cartelise, by way of increasing the prices unilaterally by Rs 10 per kg, bringing the prices from Rs 52 to Rs 62 per kg in less than a short period of time, thus rendering the industrial consumers in particular in much difficulties because of sharp increase in their production cost," he added.
Ahmed reminded that according to the decision of Economic Coordination Committee (ECC), the subsidy on export of sugar and the increase in the import duty of this item would be withdrawn in case the local price increased by 10%. In fact, the local prices have increased by more than 20%, he added.
In view of the same, he urged the government to bring the import of sugar at zero-rate and withdraw the subsidy on the export of this commodity, so that the sugar may be available to the domestic and industrial consumers at competitive prices, which may be a beneficial not only to the consumers but also the sugar confectionery products would become competitive in the international market, enabling this sector to save export market share for several million dollars.
