In a bid to combat illicit trade and curb the surge in sugar prices, the Government of Punjab has authorized its administration to initiate the retrieval of sugar stocks from mills within three days. The move comes in response to unjustified price hikes and to stabilize the sugar market.
On Monday, the provincial cane commissioner issued a notification outlining a comprehensive strategy to regulate sugar prices. The primary focus of the government’s plan is to retrieve sugar stocks from mills within a short period, with deputy commissioners overseeing the process in their respective districts.
The cane commissioner clarified that sugar mills are not allowed to hold onto sold sugar for more than 15 days. To address the unprecedented surge in sugar prices, which rose from Rs. 100 per kg in April 2023 to Rs. 155 per kg by July 2023, the government aims to reintroduce confiscated sugar into the market, curbing unjustified profits made by mills, which totaled Rs. 25 billion in just three months.
The investigation into the price hike revealed that sugar stocks, which had been sold, were not lifted by dealers and occupiers of sugar factories. Instead, these stocks were hoarded in warehouses to artificially inflate sugar prices and exploit the public.
To address the price surge effectively, the cane commissioner issued an order directing buyers of sugar purchased more than 15 days before the order’s issuance to retrieve the sugar from sugar mill warehouses within three days. Occupiers of sugar factories are prohibited from keeping sugar beyond this period, and futures contracts for sugar must be reported to the deputy commissioner of the respective district.
With the Punjab government’s swift and assertive actions to regulate sugar prices and prevent unjust profiteering, the aim is to stabilize the market and ensure fair prices for consumers. By retrieving stocks from mills and cracking down on hoarding and speculation, the government is taking decisive steps to tame the sugar price surge and protect the public’s interests.
