Pakistan : Punjab Sugar Market in Turmoil as Mills Refuse Govt Price
Sugar supply in Punjab is at a standstill as mills reject government-fixed rates of Rs165/kg, demanding Rs176 instead. Dealers have halted distribution, citing losses due to narrow profit margins. Grocery traders warn of stock depletion within days and demand revised pricing. Retailers threaten strike if pressured, urging urgent government action to resolve the crisis.
The sugar market in Punjab is facing growing turmoil as sugar mills have reportedly refused to supply at government-fixed prices, prompting dealers to suspend distribution across the province.
The federal government recently set the ex-mill price of sugar at Rs165 per kg and the retail price at Rs173. However, sugar mills are allegedly offering the commodity at Rs176 per kg, triggering a standoff with brokers, wholesalers, and retailers.
Dealers argue that until mills adhere to the Rs165 ex-mill rate, sugar distribution will remain halted. For the past four days, supply from the mills has been completely suspended, worsening the sugar crisis in Punjab.
Grocery Merchants Say Govt Pricing Model Is Financially Unviable
According to the Grocery Merchants Association, purchasing sugar at Rs176 and selling it at Rs173 is financially unviable, especially when operational costs such as transport, packaging, and handling amount to Rs10 per kg. The official profit margin, they claim, is just Rs8 per kg.
The association has demanded that the government revise the retail profit margin to at least Rs12 per kg, regardless of the fixed price. It warned that if their demand is not met, existing sugar stock will run out within three to four days, after which all sales will cease.
Rawalpindi Traders Association President Saleem Pervez Butt also voiced concerns, stating that any attempt to fine or shut down retailers could trigger a province-wide strike.
As Punjab’s sugar market remains paralyzed, stakeholders are urging swift government intervention to prevent further disruption and restore normal supply.
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Source : Tech Juice
