The Punjab Government has imposed a sugar cess on 40-kilogram bags of sugar, triggering concerns about a possible rise in sugar prices across the province.
According to officials, a cess of Rs. 5 per 40kg bag has been enforced under the Punjab Finance Act 1964. Under the new arrangement, the cess amount will be shared equally, with Rs. 2.50 paid by sugar mills and Rs. 2.50 borne by farmers.
Authorities have formally issued a notification to enforce the sugar cess. Officials clarified that the revenue generated through this levy will be utilised for the construction and rehabilitation of roads connected to sugar mills, aiming to improve transport infrastructure in sugar-producing areas.
Market observers warn that despite the split payment mechanism, the additional cost may eventually be passed on to consumers, leading to higher sugar prices in retail markets.
The development comes at a time when sugar prices are already under close watch, raising concerns about further pressure on household expenses in Punjab.
