KARACHI: As the federal government and sugar millers prepare to offer sugar at Rs130 per kg nationwide, wholesale prices continue to climb ahead of Ramadan, with retailers in Karachi charging Rs160 per kg.
They attribute the increase to rising wholesale rates, as the price of a 50 kg bag has gone up by Rs150-200 over the past few days.
Karachi Wholesalers Grocers Association (KWGA) Chairman Rauf Ibrahim said the wholesale rate has increased by Rs13 to Rs154 per kg in the last three to four days. He linked the surge to speculators and investors seeking profits during Ramadan, when demand doubles to 1.1 million tonnes from 550,000 tonnes.
“The federal and provincial governments need to wake up and intensify crackdown on the sugar mafia, middlemen, and hoarders to recover large stocks stored in godowns,” he said, warning that prices could reach Rs200 per kg if no action is taken. He urged authorities to collect cost and sales data from mills and inspect their storage facilities.
He cited reports of a crackdown in Bhens Colony, where 11,000 sugar bags of 50 kg each were recovered from a godown on Wednesday. He called for similar inspections of millers’ warehouses.
According to the Sensitive Price Index (SPI), sugar prices have risen to Rs150-165 per kg from Rs145-160 per kg in the past month. In early January, the rate was Rs130-150 per kg.
Meanwhile, a Pakistan Sugar Mills Association (Punjab Zone) spokesman said the industry would provide discounted sugar through municipal-level sale points nationwide during Ramadan. The spokesman stated that prices are primarily governed by supply and demand but are influenced by speculators who spread misinformation for financial gain.
“Such rumour-mongering is sponsored by speculators who emerge as the sole beneficiaries. The sugar industry strongly appeals to the government to uproot these elements and take action against speculators,” the PSMA stated.
