The Public Account Committee (PAC) of the Parliament has directed the government to fix the retail price of sugar at Rs63 per kg.

A few days ago sugar producers had met with Prime Minister KP Sharma Oli and had told the latter that the retail price of sugar could be set at Rs63 per kg. The PAC, keeping in view, afore mentioned suggestion, has directed the government to set the price of the sweetener.

Last month, the Ministry of Finance had imposed an import quota on sugar in order to promote the domestic sugar industry. The Cabinet approved a quota of 100,000 tonnes annually as domestic mill owners have been complaining about unsold sugar piling up in their warehouses owing to cheaper foreign products.

Although producers had promised not to increase the rates after the quantitative restriction was implemented, the price of the sweetener jumped from Rs65 per kg to Rs85-90 per kg after the quota went into effect.

On Wednesday, the Ministry of Industry, Commerce and Supplies had decided to fix the retail price of sugar at Rs70 per kilo and warned sellers of legal action if they sold the sugar above the fixed price.

Likewise, the PAC has also formed a five-member sub-committee under the coordination of Lekha Raj Bhatta to probe the recent spike in the price of sugar.