Significant increase in sugar prices due to stockpiling

Chiniot: Due to stockpiling, a significant increase in the price of sugar per kilogram has been observed worldwide, including in Punjab.

According to sources, the storage of 234,000 metric tons of sugar in Punjab's 12 sugar mills has created a crisis in the market, leading to a price hike of PKR 18 per kilogram during the past five days.

Reportedly, state authorities purchased PKR 2.9 billion worth of sugar, maintaining stocks for several weeks.

The Commissioner instructed deputy commissioners in Jhang, Sargodha, Chiniot, Faisalabad, and Toba Tek Singh to conduct raids.

As a result of these actions, the wholesale rate of sugar rose from PKR 6,100 to PKR 6,550 per 50 kilograms after Eid.

Authorities emphasize that apart from cartelization, there are no other factors contributing to the shortage in the market.

On the other hand, the wholesale market in Shehr-e-Quaid witnessed a surge in sugar prices.

During the past week, the price of a 50-kilogram sack of sugar increased by PKR 250, with the kilogram price reaching PKR 130.

The sudden price hike has created concerns among consumers, who are already grappling with rising inflationary pressures.

It remains to be seen how authorities will address the issue of stockpiling and regulate sugar prices to ensure stability in the market.