Karachi / Lahore / Islamabad:
The sugar industry may have concluded an agreement with the government to sell the sweetener to wholesalers to RS165 per kg. However, the effect of this agreement has not yet reached people, who are still forced to buy the goods at prices ranging from RS180 to Rs210 per kg.
Sugar, mainly extracted in Pakistan from sugar cane, has had a constant increase in prices in the last 7 months – from Rs140 per kg to Rs200 per kg. According to the president of Wholesale Groceers Association, Rauf Ibrahim, Mills had stopped sugar offer on Friday, causing a new price increase.
The Ministry of National Food Safety and Research and Sugaries concluded an agreement on Monday, fixing the ex-moulin price of sugar at Rs165 per kg.
“The Mills resumed the sugar offer on Tuesday, but they do not provide products at the agreed price and set the ex-moulin price to Rs175 per kg.”
He said that under the ex-1965 formula, the wholesale price should be RS168 and the retail price between RS172 and RS175. However, sugar is not available on the Gros market, even at Rs185. The president of Retail Groceers Association, Fareed Qureshi, said that the retail price of sugar in Karachi was Rs200 per kg on Tuesday.
In Lahore, the sugar is sold at the discretion of traders rather than at the rate set by the government. The official retail price of sugar is RS180 per kg, but it is sold between RS185 and RS210.
Lahore’s assistant commissioner Syed Musa Raza ordered assistant commissioners and pricing magistrates to take measures against those who sell sugar at swollen rates. However, such actions were ineffective.
Meanwhile, a high -level meeting on sugar prices took place under the presidency of the Federal Minister of National Food Security Rana Tanveer Hussain. The meeting was followed by the president and upper members of Pakistan Sugar Mills Association (PSMA) as well as senior officials from the ministry, according to a statement.
Significant decisions have been made to stabilize sugar prices and provide immediate relief to the public. The association has agreed to provide sugar at an ex-moulin price of RS165 per kg. The association appreciated the efforts of the government and ensured full cooperation in the stabilization of prices.
Officials said the impact of price reduction would be observed on the market in the next two to three days.
On this occasion, Hussain said that the government took all possible measures to relieve the people. He clearly indicated that the application of the fixed retail price would be ensured and that hoarding or profit would in no case be tolerated.
“A complete strategy has been prepared to ensure an uninterrupted sugar supply, and that the ministry remains in constant contact with the sugar industry to protect the public interest at all costs,” said the minister.
Interestingly, the trading Corporation of Pakistan (TCP) has issued a revised call for tenders indicating that, for the moment, only 50,000 tonnes of sugar will be imported. The offers were invited until July 22 under this revised tender. Earlier, a call for tenders of 300,000 tonnes was issued with a deadline of July 18.
