Punjab struggles with sugar price fixation

LAHORE: The Punjab government’s month-long efforts to fix sugar prices have yet to deliver in a meaningful way, as the reality on the ground reveals a stark contrast.

According to official data, the notified rates are being followed in only a couple of district wholesale markets. These exceptions, out of 12 major markets, include Sargodha and Rahim Yar Khan. In the remaining districts, sugar is being sold at prices that deviate significantly from the official rate of Rs 165/kg.

In Sialkot, the wholesale market price stands at Rs 184/kg, a whopping Rs 19/kg above the official rate. Gujranwala, Faisalabad and Sahiwal are not far behind, with prices of Rs 178/kg, Rs 177/kg, and Rs 172 respectively.

The stubbornly high deviation from the official price in several major markets has been a clear violation of the agreement between the federal government and the Pakistan Sugar Mills Association (PSMA).

The government’s inability to enforce the fixed prices has left consumers feeling duped. The sugar mills seem to be taking advantage of the situation, prioritizing profits over compliance with the agreement.

As the government struggles to regulate the sugar market, consumers are left to bear the brunt of the price hike. The question remains: will the government take action to ensure compliance, or will the sugar mills continue to dictate prices?

Meanwhile, the Punjab government has formed a sugar coordination body to stabilize supply and prices. As per notification, the provincial government established a Sugar Sector Coordination Committee to address supply and market issues. This move follows recent directives to enforce a fixed ex-mill price of Rs 165 per kg and enhance stock monitoring.

The committee, formed with coordination of Pakistan Sugar Mills Association, will be led by DG (Food)/Cane Commissioner, with PSMA North Zone Secretary General as secretary. Members include representatives from major sugar mills, such as Almoiz Industries Ltd and JDW Sugar Mills.