KARACHI: As many as 20 wholesalers of Jodia Bazaar would get 1,000 bags of sugar (50 kgs) each daily from a Sindh-based sugar mills at Rs36 per kg as the Sindh cane commissioner has made arrangements for supply of sugar from Shah Murad Sugar Mills to wholesalers.

These wholesalers would sell the commodity to retailers at Rs38, and the retailers would charge Rs40 per kg from consumers.

This was decided in a meeting between wholesalers, retailers and the deputy district officer (revenue) Shah Nawaz, on Friday.

It was decided that the wholesalers would sell maximum five to 10 bags to retailers on a single day.

The Sindh government had assured the city government to ensure supply from mills, but initially only one mill has agreed. The city government had already sought list of traders from their respective associations.

Giving details of the meeting, chairman, Karachi Wholesalers Grocers Group (KWGG), Anis Majeed, said that the wholesalers would register the name, shop number and area, CNIC number and contact number before handing over sugar to retailers. This sale/purchase data would later be handed to Sindh and City governments on a daily basis.

Retailers are allowed to purchase sugar at the rate of Rs38 per kg from wholesalers every day to ensure smooth supply to only domestic consumers who can purchase it at Rs40 per kg as per Supreme Court’s order.

He said he had also provided a list of another 11 wholesalers to the city government so that availability of sugar at reduced rates could be ensured.

He, however, said that confectionary, bakery and sweat meat merchants are initially not allowed to purchase sugar from these 20 wholesalers, he said.

He said that the wholesalers have been asked to make pay-orders in the name of Shah Murad Sugar Mill. Hopefully, the wholesalers would initiate sugar lifting from Tuesday, as Monday is holiday.

Mr Anis said that the government had put a responsibility on the KWGA to monitor the 20 wholesalers so that they do not sell the commodity at higher rates to other market forces.

Karachi Retail Grocers Group general secretary Farid Qureishi suggested that some wholesalers, after purchasing sugar at Rs36 per kg, should open up five to 10 stalls in each town so that retailers, after meeting all formalities of documentation, could easily lift the commodity at Rs38 per kg instead of sending it to Jodia Bazaar.

A previous effort of the Sindh government to fix the ex-mill, wholesale and retail rate at Rs36, Rs38 and Rs40 per kg respectively on Oct 7 had practically failed because the millers did not provide sugar at the agreed rate.

Consumers are already purchasing sugar at Rs60-75 per kg.

Retailers, who had lifted sugar at Rs45 per kg two months back from wholesalers, have already made huge profits by charging exorbitant rates.

Crackdown on retailers has not yet produced the desired results as less than 50 officials are monitoring the price checking campaign in this huge city.