Latest news with #Rs173
Express Tribune
9 hours ago
- Business
- Express Tribune
PAC lambasts govt's faulty sugar policies
Listen to article As a sugar crisis persists in the country, officials on Tuesday shared with the Public Accounts Committee (PAC) the names of the 67 sugar mills that exported 750,000 tons of sugar worth Rs111 billion to 21 countries over the past year. During a PAC meeting chaired by Junaid Akbar, the industries and production secretary said in 2023-24 Pakistan had surplus sugar of 1.3 million tons, of which 790,000 tons were approved for export. He said that 1.9 million tons of sugar was still available in stock, which could last until November, adding that the sugar crushing season runs from November 15 to March 15. Despite these figures, several committee members expressed dissatisfaction with the situation. The secretary for national food security claimed that the average retail price of sugar was Rs173 per kg but members, including Omar Ayub, said sugar was sold for more than Rs200 in their constituencies. Senator Fauzia Arshad reported that sugar was nearly unavailable in the market and what was available was unaffordable for ordinary citizens. PAC members heavily criticized the government's inconsistent sugar policiesexporting sugar one year and importing it the next. MNA Khawaja Shehraz Mehmood called it a "daylight robbery" and said that the same companies making huge profits from exports are now benefiting from imports. MNA Amir Dogar made direct allegations against political leaders, claiming that the highest number of sugar mills are owned by President Asif Ali Zardari, politician Jahangir Tareen, and the Sharif family. He alleged that Rs287 billion had gone into the pockets of a few powerful individuals. The remarks caused heated arguments between Dogar and other members, including Senator Afnan Ullah of the PML-N and Shazia Marri of the PPP, who demanded that such serious claims be backed with evidence. Further tension arose when Chairman Akbar questioned why the list of sugar mill owners and directors had not been submitted to the committee earlier. Officials from the Federal Board of Revenue (FBR) assured that the list has now been obtained and will be presented soon. He questioned how long sugar remains usable in storage, to which the secretary of industries responded that sugar begins to spoil after 3-4 months unless special precautions are taken. The meeting was told that the government is planning to import 300,000 tons of sugar to meet demand before the next crushing season begins. Lawmakers demanded that the government ensure this import does not harm farmers and that sugar is not brought in from countries where it was earlier exported. The PAC directed all relevant ministries to submit detailed reports and warned that future briefings would not be accepted without complete documentation. According to documents seen by The Express Tribune, JDW Sugar Mills topped the list by exporting 73,000 metric tons of sugar worth Rs11.1 billion. Tandlianwala Sugar Mills came second with 41,412 metric tons worth Rs5.98 billion. Ramzan Sugar Mills exported sugar worth Rs2.41 billion. Chaudhry Sugar Mills exported sugar worth Rs1.49 billion while Al-Arabia Sugar Mills exported Rs1.2 billion worth of sugar. The Auditor General of Pakistan revealed that sugar mills earned over Rs300 billion from recent sugar price fluctuations.
Express Tribune
2 days ago
- Business
- Express Tribune
Sugar crisis deepens across twin cities
In the digital age, there's no excuse for opacity as a transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. Photo: file The ongoing dispute over sugar supply, wholesale pricing, and retailer profits involving sugar mills, brokers, dealers, and district administration has triggered a severe sugar crisis in Rawalpindi and Islamabad. With wholesale supply disrupted, most retailers in the district have run out of stock. Sugar is now being sold at inflated prices of up to Rs220 per kilogram. In response to heavy fines and shop closures by the district administration, many retailers have removed sugar from shelves, with some selling it secretly at higher prices only to known customers. Initial negotiations between the sugar merchant association, the cane commissioner, and FBR have shown some progress. A breakthrough is expected in an upcoming meeting chaired by the federal minister. However, the crisis remains unresolved. Association leaders Rizwan Shaukat and Saleem Pervaiz Butt claim the government set the ex-mill price at Rs165 and allowed an Rs8 profit marginpermitting retail sale at Rs173. But mills are allegedly charging Rs176 per kg, making it unviable for retailers to comply. Rawalpindi Deputy Commissioner Hasan Waqas Cheema said pricing is not a district matter and must follow federal directives. Authorities are strictly enforcing the Rs173 rate, with penalties for violations. In the last 24 hours, 127 violations were reported. Fines totaling Rs145,000 were imposed, five retailers were arrested, and nine shops sealed. District-wise breakdown includes Rawalpindi (2 violations, Rs30,000 fines), Attock (11 violations, Rs8,500), Jhelum (16 violations, Rs30,000), Chakwal (8 violations, Rs22,000), and Murree (90 violations, Rs55,000, 3 arrests). Commissioner Amir Khattak has instructed retailers to ensure sugar availability at government-set prices, display rate lists prominently, and avoid hoarding or artificial shortages.
Express Tribune
3 days ago
- Business
- Express Tribune
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.
Express Tribune
22-07-2025
- Business
- Express Tribune
Retailers halt sugar sales over price dispute
The Kiryana Merchants Association announced on Tuesday a province-wide suspension of retail sugar sales in protest against recent government crackdowns, including raids, arrests, shop closures, and hefty fines imposed on shopkeepers. Starting Tuesday, retailers had ceased sugar sales until a fair and sustainable pricing mechanism is established. The announcement was made by Hafiz Arif Gujjar, Central President of the Association, and Saleem Parvez Butt, President of the Association's Rawalpindi Division. In the wake of the retail suspension, sugar is reportedly being sold on the black market at up to Rs220 per kilogram in urban centers and surrounding areas. Retailers, in an effort to avoid penalties, are now limiting sugar sales to known customers and local hotels, bypassing walk-in consumers. The Association leaders voiced strong objections to the government's pricing directives, highlighting the discrepancy between the official retail price of Rs165 per kg and the actual wholesale rate of Rs176-178 per kg set by sugar mills. They argued that it is economically unviable for small retailers to purchase sugar at such high prices and then sell it below cost. "We are being asked to sell sugar at Rs173 per kg while purchasing it at Rs176 or more. The government has arbitrarily set an Rs8 profit margin based on an unrealistic wholesale rate that mills don't follow," the Association stated. Despite informing the authorities about these pricing inconsistencies over the past two weeks, the Association said the government responded with punitive actions instead of addressing the supply issues. Shops were sealed, retailers fined, and arrests made — measures the Association deems unjust and unsustainable. Leaders further alleged that sugar mills, brokers, and dealers — many with political connections — continue to operate without restriction, supplying sugar above the official rates, while small shopkeepers are being disproportionately targeted by administrative enforcement. Reaffirming their commitment to dialogue and reform, the Association expressed a willingness to engage in negotiations and work toward a long-term pricing solution. While they are open to reducing their profit margins, they emphasised that selling at a loss is not a viable option. As part of the protest, the Association has directed all member retailers to immediately deplete their existing sugar inventories and halt new sales. Meanwhile, enforcement actions have escalated across the Rawalpindi Division, which comprises Rawalpindi, Attock, Jhelum, Chakwal, Murree, and Talagang. Authorities have issued challans to 127 shopkeepers for allegedly overpricing sugar, levying fines ranging from Rs20,000 to Rs25,000 per shop. Additionally, 59 retail outlets have been sealed, and several sugar stockpiles seized from warehouses. The Association has issued a final warning: if intimidation and penalties continue, they will escalate their protest into a complete strike of all grocery shops throughout Punjab.
Express Tribune
21-07-2025
- Business
- Express Tribune
Sugar crisis deepens as retailers cut off supply
In the digital age, there's no excuse for opacity as a transparent digital dashboard that tracks sugar from mills to wholesalers to retailers would make it harder for hoarders and profiteers to operate undetected. Photo: file The sugar crisis in Punjab, including Rawalpindi, has intensified following a deadlock between sugar mills, government authorities, wholesale dealers, brokers, and retail merchants. The Retail Merchants Association has halted all purchases from sugar mills, issuing directives to retailers to sell off current stock and cease further sugar sales. Retailers with surplus stock have been advised to distribute it to smaller shopkeepers to liquidate inventory. The association warned of a severe sugar shortage next week, with prices potentially reaching Rs220/kg. Association leaders Sheikh Rizwan Shaukat and Saleem Pervaiz Butt stated they will not be blackmailed or intimidated. "Our dignity comes before profit," they said, accusing sugar mill owners of becoming untouchable due to political connections. Retailers claim they cannot sell sugar purchased at Rs176-180 per kg for Rs173 per kg, as enforced by price controls.
