Rs 220 per quintal increase in three days

Faridkot, July 22: Sugar prices in the wholesale market have seen a sharp rise of Rs 220 per quintal in the last three days. Though additional 5.5 per cent tax on sugar will be levied from Monday, thanks to conjectures about the move, the prices have already witnessed an unprecedented increase since the announcement on July 18.

The prices shot up by Rs 90 to Rs 100 per quintal yesterday after an increase of Rs 120 on Thursday and Friday.

A Faridkot-based wholesaler said sugar prices in the physical market crossed Rs 3,840 per quintal yesterday. Three days ago, the L-31 variety of sugar was selling at Rs 3,620, he added.

With the demand for sugar expected to rise ahead of festivals like Raksha Bandhan, Independence Day and Janmashthami, the prices are likely to move northwards.

Meanwhile, traders are opposing the additional tax on sugar. They are also uncertain about the date of its implementation.

Whether the tax will be levied from the date of its announcement or from the date of its notification is not clear to the traders, said Onkar Goyal, president, Punjab Chamber of Commerce and Industries, and president, Punjab Karyana Retail Association.

Even senior officials of the Excise and Taxation Department are in the dark over the matter. KS Kahlon, Assistant Excise and Taxation Commissioner (AETC), Faridkot, said he was not aware about the timing. "I will check from the higher authorities," he said.

A Venu Parsad, Commissioner, Excise and Taxation Department, Punjab, said the situation would become clear on Monday. "I'm sure that the tax will be levied after a notification is issued in this regard".

Some sugar mills in the state today opened the sale after a two-day break. They sold sugar at prices inclusive of 5.5 per cent tax, with a promise that the tax will be refunded if it was not levied with retrospective effect.