Retailers halt sugar sales over price dispute

The Kiryana Merchants Association announced on Tuesday a province-wide suspension of retail sugar sales in protest against recent government crackdowns, including raids, arrests, shop closures, and hefty fines imposed on shopkeepers.

Starting Tuesday, retailers had ceased sugar sales until a fair and sustainable pricing mechanism is established.

The announcement was made by Hafiz Arif Gujjar, Central President of the Association, and Saleem Parvez Butt, President of the Association's Rawalpindi Division. In the wake of the retail suspension, sugar is reportedly being sold on the black market at up to Rs220 per kilogram in urban centers and surrounding areas. Retailers, in an effort to avoid penalties, are now limiting sugar sales to known customers and local hotels, bypassing walk-in consumers.

The Association leaders voiced strong objections to the government's pricing directives, highlighting the discrepancy between the official retail price of Rs165 per kg and the actual wholesale rate of Rs176-178 per kg set by sugar mills.

They argued that it is economically unviable for small retailers to purchase sugar at such high prices and then sell it below cost.

"We are being asked to sell sugar at Rs173 per kg while purchasing it at Rs176 or more. The government has arbitrarily set an Rs8 profit margin based on an unrealistic wholesale rate that mills don't follow," the Association stated.

Despite informing the authorities about these pricing inconsistencies over the past two weeks, the Association said the government responded with punitive actions instead of addressing the supply issues. Shops were sealed, retailers fined, and arrests made — measures the Association deems unjust and unsustainable.

Leaders further alleged that sugar mills, brokers, and dealers — many with political connections — continue to operate without restriction, supplying sugar above the official rates, while small shopkeepers are being disproportionately targeted by administrative enforcement.

Reaffirming their commitment to dialogue and reform, the Association expressed a willingness to engage in negotiations and work toward a long-term pricing solution. While they are open to reducing their profit margins, they emphasised that selling at a loss is not a viable option.

As part of the protest, the Association has directed all member retailers to immediately deplete their existing sugar inventories and halt new sales.

Meanwhile, enforcement actions have escalated across the Rawalpindi Division, which comprises Rawalpindi, Attock, Jhelum, Chakwal, Murree, and Talagang. Authorities have issued challans to 127 shopkeepers for allegedly overpricing sugar, levying fines ranging from Rs20,000 to Rs25,000 per shop. Additionally, 59 retail outlets have been sealed, and several sugar stockpiles seized from warehouses.

The Association has issued a final warning: if intimidation and penalties continue, they will escalate their protest into a complete strike of all grocery shops throughout Punjab.