KARACHI: The government’s intervention and reports of a crackdown on hoarders and speculators have resulted in a drop in wholesale rates of sugar.

Faisal Anis Majeed, a sugar importer/exporter, said that the ex-mill rate had nosedived to Rs160 per kg from Rs178 prior launch of an operation against speculators and hoarders to check the smuggling of the sweetener.

He said the wholesale rate for bulk orders had also dropped to Rs160 per kg from a peak of Rs185. Mr Faisal was of the view that commodity investors had also taken a back foot in sugar after the crackdown.

Despite the drop in wholesale rates, most of the online and walk-in supermarts did not show any mercy to the consumers and continued charging Rs200 per kg, while some small retailers were selling the commodity at Rs180-190 per kg.

Karachi Retail Grocers Group (KRGG) General Secretary Farid Qureishi said the wholesale bulk purchase rate is Rs160 per kg but for small quantities, the rates hover between Rs170-172 per kg.

He said very few retailers had brought down the rates by Rs5-10 per kg depending on the stocks and areas while those who had purchased the commodity at higher rates would take time to pass on the benefit of falling wholesale prices to the consumers.

Published in Dawn, September 9th, 2023