Sugar mafia makes a windfall profit in Ramazan

Price of 50kg sack which was Rs7,100 a week before Ramazan, soared by Rs400

HYDERABAD:

Sugar price has suddenly surged, reaching Rs170/kg, with the retail price rising by Rs20/kg during the ongoing holy month of Ramazan. Consumers blame this spike in prices on the "sugar mafia," which has reportedly driven up prices across the province.

The price of a 50kg sugar sack in the wholesale market, which was Rs7,100 on Feb 23, just a week before Ramazan, began to rise shortly thereafter. By Feb 27, the price of a 50kg sack increased by Rs400 to Rs7,500, leading to a corresponding rise in retail prices, which went up by Rs5, bringing the price to Rs155/kg. On March 1, just one day before Ramazan started, the price of a 50kg sack saw another Rs150 increase, bringing the wholesale price to Rs7,650.

The price hikes continued throughout the holy month. By March 4, the third day of Ramazan, the price of the 50kg sack rose by Rs100 to Rs7,700. On March 6, another Rs100 increase pushed the price to Rs7,800, and by March 9, the price had reached Rs7,900. On March 11, a new record was set when the price of a 50kg sack hit Rs8,200. Since then, the price has fluctuated between Rs8,000 and Rs8,200, causing retail sugar prices to soar to Rs170/kg, marking a Rs20 increase during the fasting month alone.

Surprisingly, the government had previously allowed millers to export sugar under the condition that domestic prices would not exceed Rs140/kg. However, the sugar mafia's price manipulation has resulted in a significant breach of this agreement. Moreover, the local sugar market is reportedly facing a surplus in stock, yet no decisive action has been taken by the government to curb the rising prices or intervene in the market.

In response to the crisis, the district administration launched a series of raids aimed at seizing illegally stored sugar. Several unauthorised warehouses were targeted, and thousands of sugar bags were confiscated.