Sugar crisis worsens in Pindi
Sugar completely vanished from government-subsidised bazaars and stalls and was sold at Rs170 per kilogramme in the open market on Wednesday, raising questions about the district administration's price control measures during the holy month of Ramzan.
The association's president, Saleem Pervaiz Butt, said that retailers cannot buy sugar at Rs163 per kg and sell it at Rs164 per kg, as their transportation, packaging, loading, and labour costs amount to Rs10 per kg.
He demanded a profit margin of at least Rs10 per kg for retailers, outright rejecting the government-mandated price of Rs164 per kg. Butt further highlighted that sugar prices are rising daily, with the price of a sugar sack increasing regularly.
Rawalpindi Deputy Commissioner (DC) Hassan Waqar Cheema has warned shopkeepers that selling sugar above Rs164 per kg will result in store closures, legal action, and arrests.
Faced with these restrictions, retailers have no choice but to halt sugar sales, the association's office-bearer said and added that instructions have been issued across all divisions, and starting Friday, sugar will be completely removed from store shelves.
The Kiryana Merchants Association also pointed out that before this, the Poultry Retailers Union and the Mutton and Beef Retailers Union had also gone on strike due to government-fixed prices. The association urged the government to set sugar, meat, and poultry prices in line with market supply.
Despite passing five days, the price control magistrates appeared to be utterly helpless in regulating the prices of essential food items and beverages for Sehri and Iftar.
Prices of vegetables, fruits, and other items for Sehri and Iftar have increased, while sugar is not available even at government-subsidised markets and stalls. Due to the lack of subsidies at the Utility Stores, all the stores in the city are presenting a desolate picture.
Since the start of Ramazan, the rising prices of vegetables and fruits have continued unabated. In the open market, ghee is being sold at Rs500 per kg, oil Rs520 per litre, mutton Rs2,400 per kg, beef Rs1,400 per kg, gram flour Rs400 per kg.
Vendors are selling coriander leaves (which are given free with vegetables) at Rs30 per bunch, potatoes Rs90 per kg, onions Rs100 per kg, garlic Rs800 per kg, ginger Rs600 per kg, peas Rs100 per kg, tomatoes Rs150 per kg, and lemons Rs200 per kg.
Banana is being sold at Rs300 per dozen, oranges Rs400-500 per dozen, guava Rs250 per kg, apple Rs300-400 per kg, pomegranates Rs450 per kg, melons Rs250 per kg, gram flour Rs400 per kg, chickpeas Rs390 per kg, samosa Rs500 per dozen, pakora Rs600 per kg, and kachoris is being sold at Rs190 per piece.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Express Tribune
7 days ago
- Express Tribune
PM restarts remittance subsidy
The federal government has decided to initially provide a Rs30 billion supplementary grant to resume subsidies for foreign remittances, indicating a lack of proper consultation among stakeholders before the finance ministry dropped the subsidies from the budget in June. Government sources told The Express Tribune that the finance ministry has conceded to the central bank's demand for subsidies under the Pakistan Remittances Initiative from the budget. However, the ministry agreed only after Prime Minister Shehbaz Sharif ordered it to urgently disburse funds for the scheme. Finance ministry officials said the scheme would now be fully funded, and in the first phase, about Rs30 billion could be approved very soon by the Economic Coordination Committee (ECC) of the Cabinet. The officials said that since there was no allocation in the budget, the money would be taken out of the contingency fund, which the federal government has retained to meet unforeseen expenses. Once the Rs30 billion is exhausted, further allocations will be made during the course of the fiscal year, they added. In the last fiscal year, the finance ministry had allocated Rs87 billion for the subsidies. But against the Rs87 billion allocation, the central bank had billed Rs200 billion to the Ministry of Finance. Of the total cost, around 85%, or Rs170 billion, was under the Telegraphic Transfer (TT) Charges Scheme. Due to the growing cost of subsidies, the finance ministry discontinued budgetary allocations and instead asked the central bank to fund the scheme, as maintaining foreign exchange reserves was the SBP's responsibility. Last month, Special Secretary Finance Nasheeta Mohsin told the Senate Standing Committee that "we are very clear that there is no money in the new budget for the Pakistan Remittances Initiative and the central bank will have to find the funding sources." But the central bank also informed the government last month that under the International Monetary Fund (IMF) programme, it cannot offer any kind of subsidies. "Overseas Pakistanis are our strength and valuable assets, and their hard-earned remittances play a vital role in Pakistan's development," said PM Sharif last week while ordering the finance ministry to resume subsidies. Sources said that SBP Governor Jameel Ahmad stated in one of the meetings that due to the discontinuation of subsidies, the flow of remittances had dropped in double digits during the first half of July. However, finance ministry officials said the slowdown in remittances could be seasonal and should not be attributed solely to the discontinuation of the scheme. SBP data shows that remittances reached a historic high of $38.3 billion in the fiscal year 202425, a 27% increase from $30.25 billion in the previous year. But the finance ministry viewed it as a Rs200 billion subsidy burden. The government has not been able to substantially increase exports, which barely touched $32 billion in the last fiscal year. Remittances helped ease pressure on foreign exchange reserves. Any slowdown in remittances may further pressure the rupee, which in recent days has started appreciating due to official intervention in the market. The ministry also had genuine concerns that financial institutions were breaking one remittance transaction into many to claim more financial benefits, and there was a need to scrutinise the payments. Acting Deputy Governor of the central bank Dr Inayat Hussain also cautioned last month that the government's decision to curtail subsidies for promoting foreign remittances may reduce the flow of these payments through banking channels. The federal cabinet has already approved a substantial reduction in remittance incentives. Following the revised scheme, the central bank issued changes that significantly reduced benefits for banks and exchange companies. The government doubled the minimum eligible transaction size to $200 and introduced a flat rebate rate of Saudi Riyal 20 per eligible transaction, effective July 1, 2025. The old rate ranged from 20 SAR to 35 SAR, which has now been cut by 43%. The TT Charges Scheme offers a zero-cost and free transfer model to the sender and receiver for eligible remittance transactions. The old model offered 20 SAR reimbursement for every transaction worth $100 and above, an additional incentive of up to 10% on growth over the previous year, and a further incentive of SAR 7 for growth exceeding 10% over the previous year. The federal government also decided that a mechanism should be established to gradually phase out the Remittance Incentive Schemes. In that regard, the SBP has been asked to propose and present an evidence-based plan factoring in a cost-benefit analysis of existing schemes, Raast integration with Buna and SAMA gateways, and strengthened controls on transferring remittances through formal channels. The government has also abolished the Exchange Companies Incentive Scheme (ECIS), under which these companies were receiving up to Rs4 per dollar as a government subsidy.
Express Tribune
03-08-2025
- Express Tribune
Sugar crackdown sours as sweetener price stays high
Despite repeated government crackdowns, stern warnings and price controls, the sugar crisis has deepened across major cities, leaving consumers nationwide scrambling for the essential sweetener. From Karachi to Rawalpindi and Lahore, retail prices have skyrocketed as high as Rs205 per kg, while shopkeepers, fearing fines and raids, have begun refusing sugar sales to unfamiliar customers. A worsening sugar crisis continues to grip Punjab, with prices climbing to as high as Rs205 per kg and a severe shortage reported across major urban centres, including Rawalpindi and Lahore. In Rawalpindi and Islamabad, shopkeepers have stopped selling sugar to walk-in or new customers due to fear of heavy fines, shop closures and arrests by local authorities. According to the Kiryana Merchants Association, the government-mandated ex-mill price of Rs165 per kg was still not being implemented in the open market, where sugar continues to be sold at Rs200 per kg. Meanwhile, retailers complain they are caught between rising wholesale prices and aggressive crackdowns by the district administration. "We have yet to receive sugar at the official ex-mill rate of Rs165 per kg," a spokesperson for the Kiryana Association said, adding that only 1,800 sugar bags were supplied to dealers in the past week, far below demand. The district administration reported that over the past 24 hours alone, 121 shopkeepers were fined for overpricing, with penalties totalling Rs350,000. Eight shops were sealed and five shopkeepers were arrested. Meanwhile, in Lahore and other parts of Punjab, sugar prices have surged well beyond the official rate of Rs173 per kg. In many areas, sugar is now being sold between Rs200 and Rs205 per kg. Mill owners, sugar dealers and retailers are pointing fingers at one another over soaring prices and hoarding, even as all three appear to be benefiting, while ordinary consumers scramble to find sugar at official rates.
Business Recorder
29-07-2025
- Business Recorder
Sugar price in capital soars to Rs210 per kg
ISLAMABAD: Sugar price in federal capital has reached Rs210 per kg level against government fixed price of Rs170, Business Recorder noted. According to retailers the distributors have stopped supplying sugar to the shopkeepers even at Rs9,000 per bag of 50kg which prior to government permission to the sugar millers was selling at Rs6,000 a year ago, but after attaining export permission and successfully exporting the allowed quantity, the millers gradually started escalating sugar prices and recently in wholesale market it touched Rs9,400 mark. The retail sugar prices after Ramadan 2025 have witnessed a sharp increase and reached from Rs135 per kg to Rs210 per kg mark an increase Rs75 per kg or 55 percent. Shopkeepers said that for a few days, the commodity price after government action came down but consequently owing to supply shortage by the sugar millers, the stockists/distributors also stopped supply of the commodity to the retailers, as a result now prices have touched all time high even on superstores. Business Recorder in April 2024 had mentioned the plan of the sugar industry of taking the ex-mill sugar price to Rs170 per 50 kg bag, saying that sugarcane prices have gone up from Rs350 per 40kg to Rs450. In a meeting of Sugar Advisory Board held on April 2024 'the millers argued that in 2023 sugarcane price was Rs350 per 40kg which now has reached to Rs450 per 40kg and production cost of sugar at present stands at Rs170 per kg while in retail market refined sugar was available in the range of Rs145-150 per kg which is lowest price in the world'. The Pakistan Sugar Mills Association (PSMA) prior to attaining sugar export permission had ensured the government of devising a mechanism where by price stability of sugar will be ensured before exporting surplus stock produced in the country. As per April 2024 SAB's meeting, the provinces and PSMA would ensure smooth supply of commodity in the domestic market and the price stability till start of next crushing season. It was agreed to seek authenticated data on available sugar stocks, including expected sugar production from beet, and recommendations regarding export from provinces before taking any final decision on the export of sugar. The representatives of PSMA informed the government officials that Pakistan at present has around 1.6 million tons of additional sugar which should be exported. The PSMA has asked the government to allow export of one million tons of refined sugar in first phase which will bring around $650-700 million foreign exchange for the country and rest of the 0.6 million tons sugar be exported in two phases in May and June 2024. The PSMA in 2024 also informed the government that if the government did not allow sugar export it will result in the smuggling of the commodity to Iran, Afghanistan and other countries as a result the country will be deprive of the precious foreign exchange while smugglers will take advantage of the situation. According to the officials, locally industrial sector was consuming 85 percent of the sugar while the rest 15 percent was of domestic use. Copyright Business Recorder, 2025
