Consumers are facing hardships due to a conflict between the government and the sugar millers due to increase in the price of sugar in spite of the fact that there is a glut of the commodity in the country.
According to sugar makers, over 1.4 million tons sugar was lying with the mills on July 31.
In addition, about 1.3 million tons sugar is lying with the Trading Corporation of Pakistan (TCP). This stock is more than sufficient for the local consumption till the mills are scheduled to start new season's crushing after about a couple of months. Sugar makers have urged the government not to release the stock in the market.
At present, the ex-factory price is over Rs 19 per kg. But the retail price is moving up gradually. The mill owners have no control over retailers. The commodity is being sold in retail at Rs 21 to Rs 22 per kg. This hike is hurting the consumers.
The TCP, according to market sources, has to unload the stock in the local market as it cannot export because of low prices in the international market. Sources said that there is no way to stop the price hike unless stock is released in the market by TCP.