By Our Correspondent
LAHORE— A fresh sugar crisis is looming in Lahore as disputes over the government-imposed ex-mill price of Rs165 per kilogram have disrupted market supplies, sources in the wholesale sector revealed on Friday.
According to market sources, several sugar mill owners who had agreed to sell sugar at the government-fixed rate of Rs165 per kg have now gone off the grid, halting supplies to the market. As a result, Akbari Mandi, Lahore’s largest wholesale market, is reportedly witnessing a sugar shortage.
Dealers claim that sugar is not being supplied at the official price and that they have stopped selling it in the market for several days. “We will only resume sales when sugar is available to us at Rs168 per kg,” a dealer said, stressing that current procurement costs make sales at government rates unfeasible.
They further warned that retail markets may also experience shortages in the coming days as existing stocks are depleting rapidly. Consumers are already feeling the pinch, with retail prices soaring to Rs190 per kg in many areas. “The government-fixed rate of Rs173 per kg is only available at select outlets,” complain consumers.
Arif Gujjar, President of the Punjab Karyana Merchants Association, blamed the government for the price hike. “The federal government first allowed sugar exports, which triggered the current price escalation,” he said. He held Federal Minister Rana Tanveer and members of the cabinet responsible for the crisis.
Meanwhile, sources in the Ministry of Production revealed that the federal government has launched a crackdown on speculative sugar trading. Future trading in sugar has been completely banned for now. Additionally, several sugar mill owners and dealers have been restricted from traveling abroad, with the government initiating steps to place their names on the Exit Control List (ECL).
The crackdown also includes an investigation into those who exported sugar in December, including mill owners, dealers, and bureaucrats. The federal production minister may also face scrutiny for his role in approving sugar exports, sources said.
In response to the allegations, a spokesperson for the Pakistan Sugar Mills Association (PSMA) denied claims that mills were withholding supply. “All sugar mills are providing sugar at Rs165 per kg ex-mill to those dealers who deposit payments,” the spokesperson stated. “There is no truth to reports that mills are not complying with the government rate.”
The situation remains tense as the government and industry stakeholders continue to trade blame, leaving consumers caught in the middle of a deepening crisis.
