The sugar swindle
The sweetener has left sourness with the customers. The incongruous decision of the federal government to export sugar and then import it back is being pondered by the hapless nation with their jaws dropped. Either the authorities are too naïve to understand the mechanics of basic economics, or they are obsessed with vested interests.
This is not the first time that a sugar scam is on the cards. Rather, it has become a modus operandi of successive governments to appease the sugar mafia — especially the mill owners and those who share the booty in the ruling clique — by playing with the support price of the sugarcane crop, then manipulating the raw and processed cost of sugar, and finally throwing it to the wolves at the altar of national interests.
This time again, the government has decided to import 750,000 metric tonnes of sugar that it had itself sold in the international market under a mysterious calculus. The product was sold at a price tag of Rs114 billion, and no one is sure what amount of foreign exchange it will incur to bring it back home. Such lopsided decisions are a crime, per se, and must warrant retribution.
Surprisingly, the swift manner in which the proposition and the entire decision-making process receive prompt passage from all stakeholders is enough to raise eyebrows, and warrants a national debate and inquiry. As far as the commoner is concerned, it leads to inflation, apart from torpedoing the domestic supply chain. This gimmick has led to a rise in sugar prices, and now the commodity is being sold at Rs190 per kilogram — a staggering Rs50 higher than the pre-export price. Yet the Ministry of National Food Security has the audacity to claim that there are sufficient stocks, and that imports were meant to lower prices!
This annually enacted swindle, meant to hoodwink the nation, is a curse. While the country has a total annual consumption of 6.4 million tonnes, it must ensure that appropriate stocks are guaranteed before any ambitious decision to export is taken — with due public endorsement. A valve to involve the consumers is indispensable to put a stop to such scams happening right under the official eyes and ears.
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Business Recorder
19 hours ago
- Business Recorder
Operation against sugar profiteers intensified
LAHORE: The Lahore district administration on Saturday intensified its crackdown on sugar profiteers, ensuring the essential commodity is available at regulated prices for the city's residents. According to the administration, the Assistant Commissioners, SDOs from the Punjab Enforcement and Regulatory Authority (PERA), and Price Control Magistrates have been actively monitoring markets to enforce compliance with fixed rates. The administration's zero-tolerance policy has led to significant actions, including fines imposed on multiple shopkeepers and the sealing of one shop found selling sugar at Rs190 per kg, with a case registered against its owner. To address complaints of sugar shortages in Baghbanpura, the administration swiftly supplied 36 tonnes of sugar to stabilise availability. Commenting on the crackdown, Deputy Commissioner Syed Musa Raza said that sugar would be sold at Rs173 per kg across Lahore, reinforcing the administration's commitment to preventing exploitation through inflated prices. 'The ongoing crackdown targets profiteers and hoarders, with strict penalties for violations. To facilitate reporting, the administration has established a dedicated control room number (0307-0002345) and encouraged residents to use social media platforms to lodge complaints about overpricing,' he added. He made it clear that exploitation under the guise of business will not be tolerated, and the administration is working tirelessly to ensure the availability of essential goods at fair prices. 'These efforts reflect the administration's dedication to protecting Lahore's residents from unfair trade practices, fostering a stable and equitable market environment through proactive enforcement and vigilant oversight,' he added. Copyright Business Recorder, 2025
Express Tribune
3 days ago
- Express Tribune
Sugar supply disrupted in metro as wholesalers protest fines
Despite the Prime Minister's directives, sugar is not being supplied at the fixed ex-mill price of Rs165 per kilogram. Following penalties imposed by the administration on wholesale traders, wholesalers in Karachi's Jodia Bazaar have stopped selling sugar. According to Rauf Ibrahim, Chairman of the Wholesale Grocers Association, sugar supply in the wholesale market has been suspended for the past three days, resulting in the retail price surging to Rs200 per kilogram. He said that instead of acting against sugar mills and hoarders, the Karachi administration is unfairly targeting traders. According to a survey by The Express Tribune, as in other parts of the country, sugar at government-fixed prices is unavailable in Karachi, forcing consumers to buy it at inflated rates. Sugar was being delivered at an ex-mill rate of Rs171.50 per kg until three days ago. However, wholesalers stopped purchases following the imposition of heavy fines, leading to a suspension in supply at the official rate of Rs165 per kg. With buying activity halted, a sugar shortage has developed in the wholesale market, pushing prices up across the board - at ex-mill, wholesale, and retail levels. In response to the overpricing, the Karachi Commissioner has launched a crackdown across all districts. A total of 87 profiteers have been penalised, with fines totaling Rs1.077 million. Seven shops were sealed, and two individuals were arrested. According to the survey, sugar prices in the wholesale market have climbed to Rs190 per kg, with retail prices reaching Rs200 per kg. Citizens are calling on the administration to take meaningful steps to ensure sugar is available at government-approved rates.
Express Tribune
7 days ago
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Sugar price control fails
Despite the Karachi commissioner setting the wholesale price of sugar at Rs170 per kilogramme and the retail price at Rs173, there has been no implementation of these official rates across the city. In wholesale markets, sugar is being sold at Rs175/kg, while at the retail level it is priced around Rs190/kg. In smaller neighborhood shops, the price has surged to as high as Rs200/kg, leaving consumers with no option but to purchase sugar at inflated rates. Although wholesale prices have recently dropped by Rs8/kg to Rs175, this reduction has not been passed on to end consumers. In most city markets, sugar is being sold for between Rs185 and Rs190/kg, with retailers refusing to lower their prices. Under an agreement between the federal government and the Pakistan Sugar Mills Association, the ex-mill price of sugar was fixed at Rs165/kg effective from July 15. Following that, the Karachi commissioner issued official wholesale and retail prices. However, enforcement on the ground remains virtually non-existent. Consumers complain that price control committees have become ineffective, and government measures exist only on paper.
