Punjab is once again facing a sugar crisis as supply has been suspended due to an ongoing conflict between sugar mills, brokers, wholesalers, and retailers over newly fixed sugar prices — pushing retail prices up to Rs200 per kg.
Reports indicate that the federal government recently set the ex-mill price at Rs165 per kg and the retail price at Rs173. However, sugar mills allegedly refused to comply, offering sugar at Rs176 per kg instead.
Dealers and brokers insist that distribution will not resume until mills supply sugar at the official rate of Rs165. As a result, sugar deliveries have remained halted for the past four days.
The Kiryana Merchants Association stated they are unwilling to purchase sugar at Rs176 and sell it at Rs173, citing insufficient profit margins. With operational costs totaling Rs10 per kg, they argue that the current Rs8 profit margin is unfeasible.
They are demanding that the government increase the retail margin to Rs12 per kg, regardless of the fixed price. The association also warned that if their demands go unmet, sugar stocks will run out within three to four days, potentially leading to a complete sales halt across Punjab.
Saleem Parvez Butt, President of the Rawalpindi Traders Association, also cautioned that any fines or forced shop closures would trigger a province-wide strike.
Read more: Sugar prices surge ahead of Ramazan
