The Kiryana Merchants Association (KMA) has rejected the government’s recently announced ex-mill, wholesale, and retail sugar prices, calling them unworkable and warning of a potential halt in sugar sales if revised rates are not set through consultation.
KMA representative stated that the government-fixed wholesale rate of Rs159 per kilogram is not feasible, as sugar is not available at this price in the market. They said sugar is currently being sold for Rs180 per kg in urban areas and Rs190 in rural localities due to the absence of proper regulatory checks.
The association explained that while the official ex-mill price is Rs159 per kg, transportation and handling costs push the wholesale rate to Rs165.50 by the time the sugar reaches to big cities like Lahore, Rawalpindi Islamabad. Additional expenses including labour, loading, unloading, packaging, and weight discrepancies raise the cost to Rs168 per kg for local grocers.
“How can we sell sugar at Rs164 per kg when we’re buying it at Rs168?” Butt asked, arguing that the pricing structure is unsustainable. He urged the government to conduct a cost assessment from the ex-mill stage to retail shops and revise prices accordingly.
The KMA demanded a profit margin of Rs15 per kilogram after all costs and called for a joint meeting involving the district administration, price control committee, wholesalers, and retailers to establish a realistic sugar price.
Failing this, the association warned it may stop both wholesale and retail sugar sales, adding that if necessary, the administration and sugar mills could take over direct sales in the open market.
