From last 20 days consumers in Punjab state have started experiencing a sour taste in sugar as the price of the commodity have jumped up by about 20%. The imposition of value added tax (VAT) on sugar and strike by wholesalers in the state have led sugar prices moving up.
The state consumes at around 8 lakh quintals of sugar per month out of which 65-70% comes from other states. Due to ongoing agitation across the state and festival season approaching nearer traders are under fear that the price of sugar will surge in coming days as stockists and retailers are facing fast depletion of their stock.
As part of resource mobilization exercise, last month the SAD-BJP led Punjab government imposed 5% VAT on sugar and 10% surcharge on the same becoming the only state which imposed VAT on sugar. The surcharge was later withdrawn but the imposition of VAT has led the prices of sugar rising by Rs 200 per quintal.
To protest against the state governments move and to impose pressure on it to withdraw the levy on sugar, traders have decided to hold an agitation on August 7.