Millers 'refuse' to drop sugar price, threaten to cut supply if forced

The ongoing dispute between sugar mill owners and the government over sugar pricing remains unresolved as sugar millers refused to drop the rates, ARY News reported on Tuesday, citing sources.

As per details, the government and sugar millers failed to reach consensus on the prices as the millers refused to sell sugar at Rs140 per kg, the sources said and added that sugar prices are expected to rise further ahead of Eidul Fitr due to shortage.

Sugar mill representatives have reportedly warned that if the Pakistan government intervenes to reduce prices, sugar supply to the market may be halted.

They also pointed out that the government itself allowed sugar exports and should not complain about the resulting shortage.

Currently, sugar is being sold in retail markets at Rs170 to Rs175 per kg. Despite the government’s efforts to stabilize prices, no significant reduction has been observed.

It is to be noted that Pakistan government allowed sugar millers to export sugar on the assurance of stability of the rate.

Sources said on March 14 that Prime Minister (PM) Shehbaz Sharif took notice of inflating prices and ordered a crackdown on sugar hoarding.

The direction came during a high-level meeting chaired by PM Shehbaz to review sugar prices and the commodity’s supply across Pakistan.

During the meeting, detailed briefings were provided to the prime minister on the current consumption, supply, and pricing of sugar.

PM Shehbaz issued strict directives to take action against those responsible for creating artificial shortages and inflating prices in Pakistan.

Shehbaz Sharif emphasised that sugar hoarding and hypothetical trading to artificially increase sugar prices would not be tolerated.

The prime minister instructed authorities to launch a crackdown on sugar hoarding and profiteers and submit a comprehensive report.