Latest news with #KiryanaMerchantsAssociation
Express Tribune
21-03-2025
- Business
- Express Tribune
Traders defy official sugar price
The Kiryana Merchants Association (KMA) has rejected the government's newly set ex-mill, wholesale, and retail sugar prices, calling them unrealistic and demanding a reasonable wholesale price. The association has sought a profit margin of Rs15 per kilogramme after covering costs. According to the association, sugar is not available anywhere in the city at the wholesale rate of Rs159 per kg. Due to the lack of checks and balances, sugar is being sold for Rs180 per kg in the open market. The association's president, Saleem Parvez Butt, and provincial secretary-general Rizwan Shaukat, explained that the ex-mill price of sugar is Rs159 per kg. After factoring in transportation costs, the price of sugar from the mills to the Rawalpindi district comes to Rs165.50 per kg at the wholesale level. Due to factors like labour, loading, unloading, packaging, and weight discrepancies, sugar costs Rs168 per kg for local grocers, he said and questioned how they could sell sugar at Rs164 per kg when they are buying it at Rs168. This is impossible. Butt urged the Deputy Commissioner (DC) to calculate the actual expenses from the ex-mills price to the retail shops in the Rawalpindi district and set the price accordingly. To do this, a joint meeting of the district administration, the price control committee, wholesale dealers, and the KMA should be convened to determine the real price of sugar. If this is not done, the association could halt both wholesale and retail sugar sales. The association warned that sugar mills and the administration could sell sugar directly, but the wholesalers would stop the open market sales altogether. In the city centre, sugar is being sold for Rs180 per kg, while in surrounding areas, it has reached Rs190 per kg.
Express Tribune
06-03-2025
- Business
- Express Tribune
Sugar crisis worsens in Pindi
The sugar crisis further worsened in the twin cities on the fifth Ramazan on Thursday, prompting the Kiryana Merchants Association to announce a suspension of sugar sales starting today (Friday). 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.
Express Tribune
06-03-2025
- Business
- Express Tribune
Rawalpindi's sugar crisis deepens as merchants announce shutdown
Listen to article RAWALPINDI – The city is grappling with an intensifying sugar crisis, as the Karyana Merchants Association has declared that it will cease sugar sales starting Friday as the association stated that it could no longer sell sugar at a price that leaves them with no profit margin. 'We cannot buy sugar at Rs163 per kilogram and sell it at Rs164 per kilogram,' said the association. 'In addition to the cost of sugar, we incur another 10 rupees per kilogram in transportation, shopping bags, and loading expenses.' Salim Parvez Butt, President of the Karyana Merchants Association, emphasized that they reject the government-set price of Rs164 per kilogram and are calling for wholesalers to provide retailers with a 10-rupee profit per kilogram. In response to the situation, the Deputy Commissioner of Rawalpindi issued a warning, stating that any shop found selling sugar above the official price of Rs164 per kilogram would face legal action, including store closures and criminal charges against the shopkeepers. Earlier, it was reported that sugar prices in Pakistan are expected to rise sharply in the coming weeks, potentially reaching Rs200 per kilogram, as the country faces a shortage of nearly 1 million tonnes. Currently, sugar is selling at Rs165-170 per kg in retail markets, up from Rs159 per kg in wholesale. As of this week, wholesale sugar prices in Lahore stand at Rs159 per kg, while retail prices are between Rs165 and Rs170 per kg, a significant increase from Rs140-150 per kg just a month ago. Hafiz Arif, President of the Kiryana Merchants Association, attributed the shortage to excessive exports of 700,000 tonnes of sugar over the past year. "Our current stocks are barely 5.8 million tonnes, but domestic consumption is rising. Exporting such large quantities has left us vulnerable," he said. Arif also noted that sugarcane recovery has dropped to nearly 12%, and the area of cultivation has decreased by 20% this season. "This means estimates of total sugar production have been compromised, and market forces are predicting the price could hit Rs200 per kilogram soon. Currently, open-market or wholesale dealers do not have stocks, but sugar mills do," he added. Official data suggests that Pakistan's sugar production for the 2024-25 season will reach 6.8 million tonnes, a 3% increase from the previous year. However, with annual consumption estimated at 6.6 million tonnes, the surplus is minimal. Industry experts warn that even minor disruptions, such as hoarding or supply chain delays, could trigger panic buying.
Express Tribune
05-03-2025
- Business
- Express Tribune
Sugar prices may soar to Rs200/kg
Listen to article Sugar prices in Pakistan are expected to rise sharply in the coming weeks, potentially hitting Rs200 per kilogram, as the country faces a shortage of nearly 1 million tonnes. Currently, sugar is selling at Rs165-170 per kg in retail markets, up from Rs159 per kg in wholesale. As of this week, wholesale sugar prices in Lahore stand at Rs159 per kg, while retail markets are selling it between Rs165 and Rs170 per kg, a sharp jump from Rs140-150 per kg just a month ago. Speaking to The Express Tribune, Hafiz Arif, President of the Kiryana Merchants Association, attributed the shortage to excessive exports of 700,000 tonnes of sugar over the past year. "Our current stocks are barely 5.8 million tonnes, but domestic consumption is rising. Exporting such large quantities has left us vulnerable," he said. He added that sugarcane recovery has dropped to nearly 12%, and the area of cultivation has also decreased by 20% this season. "This means estimates of total sugar production have been compromised, and market forces are predicting the per-kilogram sugar price to hit Rs200 soon. Currently, open-market or wholesale dealers do not have stocks; however, sugar mills do," Arif added. Official data suggest Pakistan's sugar production for 2024-25 will be 6.8 million tonnes, a 3% increase from the previous year. However, with annual consumption estimated at 6.6 million tonnes, the surplus is negligible. Industry experts warn that even minor disruptions, such as hoarding or supply chain delays, could trigger panic buying. The timing of the crisis could not be worse. During Ramazan, sugar consumption spikes as households prepare traditional sweets, sherbets, and desserts for iftar and sehri. To mitigate this blow, the government has allocated 100,000 tonnes of sugar for subsidised sales at Rs130 per kg through Ramazan bazaars across the country. "We are committed to protecting low-income families from profiteering," said a Punjab Food Department official. However, citizens say the initiative is insufficient. "Subsidised sugar covers barely 10% of the monthly demand during Ramazan. Most families will still rely on open markets, where prices are uncontrollable," said Economist Osama Siddiqi. Last year, similar measures failed to prevent prices from rising by 25% during the holy month. A spokesperson for the Pakistan Sugar Mills Association (Punjab Zone) rejected the claims, stating that the ex-mill price of sugar has not increased abnormally, as it fluctuates based on supply and demand. In a statement, the Pakistan Sugar Mills Association (PSMA) spokesperson said the price mechanism depends on market forces. The real beneficiaries of the artificial price hike in the retail market are the Satta Mafia, hoarders, and profiteers, who take advantage of the situation by spreading rumours to manipulate market forces for undue profits. He added that sugar mills are already providing sugar at a concessional rate of Rs130 per kg in all districts and tehsils through Ramazan Package discount stalls in collaboration with federal and provincial governments and district administrations. Moreover, sugarcane rates have risen to Rs650 per maund in the current crushing season. Other factors driving up sugar production costs include increased taxation on the sugar industry, expensive imported chemicals, and rising wages, he noted. "It is an established fact that when the cost of raw materials increases, the price of the final product will ultimately rise for the industry to survive and recover production costs," the spokesperson said. He further explained that in the current crushing season, sugarcane prices have increased significantly due to global warming effects and pest attacks on crops. "Last summer, extreme temperatures damaged the sugarcane crop. Later, when farmers needed to fertilise the crop, heavy rains in September and October severely impacted yields," he added.
