OKARA: A group of 50 to 60 dealers and wholesalers controls the supply of sugar to district markets, which is at a later stage controlled by retailer monopolists.

Nowadays there is a shortage of sugar in the district and retailers sell the commodity only to their acquaints, that too on inflated rates. A retailer said they would not sell sugar to a stranger for he might be a price control committee official and would slap them a fine.

This correspondent spoke to several people dealing in retail in the main commercial bazaars of the city on the mechanism of the sugar supply and factors behind the shortage.

They said on the condition of anonymity there was absolutely no shortage of sugar in the markets but monopolists had managed to dump hundreds of sugar bags in underground warehouses and would supply to the retailers of their choice rate. Dawn learned sugar was available in the markets of Sahiwal and others adjoining districts.

Shopkeepers explained the reasons for the non-availability of sugar to Okara markets and free availability in other districts.

They said that only 20 to 25 dealers of Okara district had a direct access to sugar mills in Rahim Yar Khan areas as these mills were not defaulters to farmers whereas other sugar mills would default on farmers’ payments and risked sealing of the mill premises. They said the ex-mills rate increased per bag because of transportation and others expenditures.

They said the district administration had unjustifiably been raiding the godowns of dealers and wholesalers without considering their market facts. They said dealers had invested tens of millions on the business but the administration demanded not to keep more than 50 bags of 50kg bag each in the storage site.

They said administration, dealers and wholesalers knew about the factual ground realities and in this so sweet business, all for-for profit stakeholders worked in connivance of each other and the end sufferer was the common man who had to buy sugar at Rs80 per kg from a store.

Presently, the ex-mills gate price of a 100kg bag is Rs 6,800 in the mills of Rahim Yar Khan. Dealers say they have to bear Rs2 per kg transportation cost. In this way, they get sugar Rs70 per kg, as per governmental orders must be sold not more than Rs71.50 paisa per kg, which is not feasible.

Retailers said that their profit in the sugar game had remained Rs1.50 in the three decades. Most of the money was made by billionaire investors (wholesale dealers) of this utility items as they invested in advance on sugar mills at the time of crushing season in the mills.

Published in Dawn, August 2nd, 2019