Sugar price crosses Rs 44 per kg mark
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The 5 per cent VAT on sugar has come as a blessing in disguise for retailers as they have increased the price of sugar by nearly Rs 9 a kg in the past few weeks while the tax increase shows increase of Rs 2 a kg rate only. The price of sugar in retail market is now in the range of Rs 42-Rs 44 a kg depending upon the location of the shops while in wholesale market it is available at Rs 40 a kg.
Jagjit Singh, President of wholesale sugar and banaspati union said,"Rs 2 was the gain in prices due to VAT imposed by the state Government and another Rs 2-3 a kg gain came from the mills after limited quota was released. Due to Raksha Bandhan, the demand of sugar increases and hence the millers also increase the price. In all, in wholesale market sugar is available at Rs 40 a Kg and a few inferior qualities are also available at Rs 39 a kg as well."
The retailers hence should not sell it more than Rs 41 a kg because they get some money back after selling the sugar bags as well. However, there seems to be no check as every shop has its own price and even the consumers are hardly in a mood to ask the reason of a steep hike. At Mani ram balwant Rai- a wholesale shop, sugar is available at Rs 41 a kg while at many shops located in model town, model town extension and even on Pakhowal road, sugar is not less than Rs 43-Rs 44 a Kg.
"It was available at Rs 35 a kg few weeks back and now all of a sudden it is at Rs 44 a kg, Sugar is used in daily need by everyone. So imposing a tax and further price hike game by the mills is not justified.We are not even getting very good quality sugar and still the shopkeeper sells it at Rs 44 a kg," said Ashok Kumar, a migrant staying in Vikas Nagar. Ashok is a factory worker.