Trading of sugar remains suspended after raids

LAHORE: Trading of sugar remained suspended on Wednesday following the district management’s raids on Tuesday in which three sugar dealers were arrested and huge stocks were confiscated.

Shops at Baber Centre where mainly sugar wholesalers’ shops and offices are situated remainedclosed as a meeting between the sugar dealers, millers and the secretary food is scheduled for Thursday (today) to decide about sugar prices and raids on sugar godowns.

On Wednesday, no trade of sugar was reported in Akbari Mandi while Tuesday’s rate was Rs 7,960 for 100kg. Even on this rate, the dealers said, no stock was available and the new price will not be quoted until the outcome of Thursday’s meeting between the stakeholders and the government. However, in retail, sugar was sold at Rs 80 to 85 per kg while the district administration has fixed its rate at Rs 70 per kg. At utility stores, sugar was sold at Rs 68 per kg while across the city, sufficient stocks were available at utility stores and it was sold without any limit.

An official at a utility store said buyers are allowed up to 10kg sugar as the majority of buyers used to buy 5kg sugar. On the other hand, the total sugar stocks in Punjab crossed almost 2.4 million metric tonnes as a result of ongoing sugarcane crushing season. The Punjab-based mills have produced almost 1.8 million tonnes of sugar as compared to 1.7 million metric tonnes during the corresponding period of the last crushing season. Despite a small reduction of almost 2 per cent area under sugarcane cultivation this year, sugar production has been increased, an official said.

Another official of the Food Department said the retail price of sugar could not exceed Rs 70 per kg even after including all costs of production. The official said that the millers should bring down the price of sugar as the government will not allow anyone to fleece the public.

Meanwhile, Pakistan Sugar Mills Association (PSMA) Punjab Chairman Numan Khan also admitted that ample stocks of sugar are available in the country. “The government should end the environment of uncertainty and stop harassing the sugar dealers by arresting them,” he said, adding that if the shortage of sugar occurred in the market due to the government acts of harassment, the sugar mill industry will not be responsible for it.

He feared disturbance in sugar trading activities in the province due to the arrest of sugar dealers. The government is harassing sugar dealers unnecessarily in all districts. Resultantly, the dealers are not prioritizing sugar trading, which can affect sugar supply and availability to buyers despite ample stocks with mills, he observed.