Deal falls flat as sugar prices stay high
Sugar, mostly extracted in Pakistan from sugarcane, has seen a steady increase in prices in the last 7 monthsfrom Rs140 per kg to Rs200 per kg. According to Wholesale Grocers Association Chairman Rauf Ibrahim, mills had stopped supply of sugar on Friday, causing a further hike in prices.
The Ministry of National Food Security and Research and sugar mills reached an agreement on Monday, setting the ex-mill price of sugar at Rs165 per kg.
"The mills resumed supply of sugar on Tuesday but they are not providing the produce at the agreed price and have set the ex-mill price at Rs175 per kg."
He said under the Rs165 ex-mill formula, the wholesale price should be Rs168 and the retail price between Rs172 and Rs175. However, sugar is not available in the wholesale market even at Rs185. Retail Grocers Association Chairman Fareed Qureshi said the retail price of sugar in Karachi was Rs200 per kg on Tuesday.
In Lahore, sugar is being sold at the discretion of shopkeepers rather than at government-fixed rates. The official retail price of sugar is Rs180 per kg, but it is being sold for between Rs185 and Rs210.
Lahore Deputy Commissioner Syed Musa Raza has directed assistant commissioners and price control magistrates to take action against those selling sugar at inflated rates. However, such actions have proven ineffective.
Meanwhile, a high-level meeting on sugar prices was held under the chairmanship of Federal Minister for National Food Security Rana Tanveer Hussain. The meeting was attended by the chairman and senior members of the Pakistan Sugar Mills Association (PSMA) as well as senior officials of the ministry, according to a statement.
Important decisions were made to stabilize sugar prices and provide immediate relief to the public. The association agreed to supply sugar at an ex-mill price of Rs165 per kg. The association appreciated the government's efforts and assured full cooperation in stabilizing prices.
Officials stated that the impact of price reduction would be seen in the market within the next two to three days.
On the occasion, Hussain said that the government is taking all possible steps to provide relief to the people. He made it clear that enforcement of the fixed retail price would be ensured and that hoarding or profiteering would not be tolerated under any circumstances.
"A comprehensive strategy has been prepared to ensure uninterrupted supply of sugar, and that the ministry remains in constant contact with the sugar industry to safeguard public interest at all costs," the minister said.
Interestingly, the Trading Corporation of Pakistan (TCP) has issued a revised tender stating that, for now, only 50,000 metric tons of sugar will be imported. Bids have been invited until July 22 under this revised tender. Earlier, a tender for 300,000 metric tons was issued with a bid deadline of July 18.
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