Sugar crisis deepens as retailers cut off supply
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.
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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
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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.
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6 days ago
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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.
