Sugar mills halt supply, triggering price volatility

Sugar mills across Sindh have halted sugar supply to the provincial capital since Tuesday, disrupting wholesale markets and causing concern over an impending price hike. The stoppage in supply has left wholesalers in a state of uncertainty, as they are unable to secure sugar at a consistent price.

Rauf Ibrahim, Chairman of the Wholesale Grocers Association, revealed that as of Monday, the ex-mill price of sugar stood at Rs175 per kg, while the wholesale price was Rs179 per kg. However, with the halt in supply, sugar is no longer available at these rates, leaving the markets in disarray.

Ibrahim accused sugar mill owners of deliberately creating an artificial sugar crisis, alleging that the mills are intentionally withholding supplies to drive up prices. He claimed that the owners are hoarding sugar in anticipation of selling it at a higher price once the stock is replenished.

"Imported sugar from abroad takes at least three weeks to arrive, which means there is no immediate alternative to the local supply," Ibrahim said, highlighting the growing concern among wholesalers. "As a result, there is currently no fixed price for sugar in Karachi's wholesale markets. This uncertainty poses a real threat of a sudden price hike," he added.

The sugar crisis has exacerbated the already fragile economic conditions, with wholesalers and consumers alike fearing a spike in prices, especially with Ramadan approaching.