Pakistan Sugar crisis looms as dealers halt supply
A major sugar crisis is unfolding in Rawalpindi and across Punjab as sugar dealers have halted supply in protest of new tax rules. The Federal Board of Revenue (FBR) now requires dealers to deposit full payments directly from personal bank accounts to sugar mills. Refusing this, the Sugar Dealers Association has suspended purchases, threatening to push prices beyond Rs 200 per kilogram.
RAWALPINDI:
New sugar supply regulations have triggered a severe crisis in Rawalpindi, as wholesale dealers have rejected the rules and suspended supply from sugar mills across Punjab.
According to sources, if the issue is not resolved within 24 hours, the shortage is expected to worsen across cities in Punjab, potentially pushing sugar prices beyond Rs200 per kilogramme.
From July 1, with the start of the new fiscal year, the Federal Board of Revenue (FBR) made it mandatory for all sugar dealers to deposit the full payment for sugar directly from their personal bank accounts into the accounts of sugar mills. The Sugar Dealers Association has rejected this requirement.
After a meeting, the Sugar Dealers Association announced that they will not deposit supply payments directly from their accounts into sugar mill accounts. Instead, they will stick to the old method of making payments through brokers. As a result, sugar dealers have boycotted depositing money into the sugar mills’ accounts and have also stopped purchasing sugar from the mills.
Sources said that this situation has led to a complete suspension of sugar supply across Punjab by sugar dealers, sparking a crisis in wholesale markets.
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Source : The Express Tribune
