March 15, 2006	Wednesday	Safar 14, 1427

KARACHI, March 14: The Jodia Bazar and its adjacent area, the hub of country’s wholesale trade, have run out of sugar stocks, thus resulting in suspension of sugar supply to the retail markets for the last two to three days owing to government’s decision of restricting traders to get separate licence for sugar trade.

At present Jodia Bazar traders are not quoting any wholesale price since they have suspended trading and stopped lifting the commodity from sugar millers from Saturday.

Consumers, who were paying Rs40-42 per kg last month owing to sugar crisis, however got some relief after the government took some corrective measures to rationalize the price at the retail level.

Karachi Retail Grocers Group (KRGG) general-secretary Farid Qureishi said that retailers had not been getting sugar from the Jodia Bazar for the last two to three days as wholesale traders had already sold out their entire stocks by Saturday.

“Retailers have only two to three days of stocks for future selling and in case supplies are not restored, the price will again come under pressure,” he said and added that in many areas the retailers had already started cashing the situation by charging Rs38 per kg as compared to Rs36-37 last week.

The government has given a deadline of March 12 to the wholesale traders to get their licence, but so far majority of traders have failed to do so.

Adviser to the Karachi Wholesale Grocers Association (KWGA), Anis Majeed said the provincial food department in the middle of February announced Rs5,000 as annual licence fee, binding the wholesalers to get separate licence.

He said the association through a letter informed the Sindh food department that there was no justification of forcing the wholesalers to get another licence as they already had Food Grain Licence under the same act.

He said the members had sought time from the food department for a meeting so that the matter could be sorted out. “Actually, sugar millers open the price in the market. But there is a common misconception that wholesalers are responsible for price fluctuations in the market,” he added.

Mr Majeed said there were also reports that the provincial food department was considering binding the wholesalers to keep 60 tons of sugar stocks at their godowns. “The government should first check the millers, instead of the wholesalers.”

He said that there was no stock of sugar in the Jodia Bazar as the wholesalers had suspended lifting sugar from the millers due to uncertain market situation. “Traders feel that a separate licence for sugar is an additional burden.”

Mr Majeed said that retailers had only three to four days of stocks and the situation might turn adverse in case sugar trade at the Jodia Bazar did not resume.

Former KWGA general-secretary Mohammad Shakil said the provincial food department was also asking the wholesalers to provide a fortnightly report of sugar stocks and even names of the buyers. He pointed out that majority of the wholesalers had not made the licence even after the expiry of date. “Only one trader, who is also an importer, has applied for the new licence.”

Mr Shakil said the wholesalers were already providing details of stocks under the Food Grain Licence to the food department.

The markets were flooded with sugar stocks till last weekend, but traders sold all the stocks by Monday and currently the Jodia Bazar is out of sugar stocks. He said that some other wholesale markets like Landhi, Water Pump, Malir, Orangi Town, Korangi, Baldia, etc., might have one day stock, whereas retailers might have one or two days of stocks.

On Saturday, the wholesale price of sugar was Rs34.80 per kg, rising to Rs35.30 on Tuesday.