LAHORE:
Every now and then, the Punjab government announces a new crackdown against commodity hoarders, assuring citizens that food items will be sold at fixed rates. Surprisingly, none of the efforts appear to bear any fruit, as consumers continue to pay high prices for staples like sugar.
Although the government has taken steps to restore the supply of sugar in the country, sugar has still not become available at the retail level in the general market. The district administration is taking daily measures to ensure the supply of sugar and has set the price of sugar at Rs170 per kilogram. However, in retail markets, sugar is still being sold at Rs200 per kilogram.
Muhammad Shehzad, a resident of the Faizpur area of Lahore, revealed that even though the government had fixed the price of sugar at Rs170 per kilogram, retailers were selling it for up to Rs200. “Since nearly all sugar mills belong to members of the government and the opposition, no action can be taken against them. Hoarders make profits by increasing the price of sugar every year, but no one is caught,” said Shehzad.
According to a spokesperson for the district government, magistrates have conducted raids to control the price of sugar, and cases have been registered against those selling at high prices. Additionally, to monitor the daily supply of sugar, the government is maintaining a tracking record through revenue and intelligence agencies so that the supply chain can be checked.
However, while a record is maintained up to the wholesale level, sugar continues to be sold at higher prices in different areas at the retail level. It is estimated that profiteers have earned up to Rs134 billion across the country. This season, 6.8 million tons of sugar have been produced, out of which Punjab alone has produced 4.37 million tons.
For the upcoming season, production is expected to meet demand. In this regard, Chaudhry Zaka Ashraf, Chairman of the Pakistan Sugar Mills Association, stated that sugar production has been sufficient to meet national needs, and the government is monitoring sugar supply through the Federal Board of Revenue (FBR) and Intelligence Bureau (IB).
“If the next crushing season begins in October, it will help fulfill consumption requirements. However, due to recent floods, a decline in sugar production is expected. Nevertheless, sugar mills are extending full cooperation to the government in this matter,” said Ashraf.
Reportedly, the production of sugar in the current season may be affected due to agricultural and climatic factors, including rainfall, temperature, and climate change. Therefore, variable sugar production is possible in the next season, with some experts predicting the yield to near 5.8 million tons. Thus, the government will have to take steps in this regard.
According to Asghar Butt, Leader of the Sugar Dealers Association, the supply of sugar flows normally in the market; however, discrepancies arise once the commodity is sold at the local level. “There is no check and balance of sugar supply from the market to retailers, due to which its price continues to fluctuate,” noted Butt.
In the meantime, the Punjab government has ordered that the sugar stocks in the sugar mills be seized to discourage hoarding and stop black marketing.
