Punjab govt seals mills as sugar crisis intensifies

Updated 05 Nov, 2021

The Punjab government has intensified action after the rise in sugar prices, and sealed two sugar mills while seizing hundreds of tonnes of the commodity, reported Aaj News.

Chief Secretary Punjab Kamran Afzal has said that a crackdown has been started against sugar hoarders in the province.

Two sugar mills have been sealed in Sargodha and Faisalabad while 6,757 tonnes of sugar were recovered from Rahim Yar Khan, 100 bags from Lahore, 480 bags from Sargodha, and 960 bags from Sahiwal.

Sugar being sold at Rs130/kg in wholesale market, claims PBCMA

Chief Secretary Punjab informed that government officials have been deployed for checking the stock of sugar mills and selling them at a fixed price.

Kamran Afzal further said that the confiscated sugar will be sold in the market at a controlled rate which will reduce the price of sugar. The ex-mill price of sugar is fixed at Rs84.75 while retail is fixed at Rs89.75.

The sugar crisis intensified in different parts of Punjab including Lahore, as the wholesale price of sugar has reached Rs140 per kg.

At present only imported sugar is available in the market at the rates fixed by the government, whereas there is a severe shortfall of locally produced sugar. According to market dealers, the demand for local sugar in Lahore is 3,000 tonnes while the supply is only 500 tonnes per day.

Sugarcane crushing season will begin on 15th

The Punjab Food Department on Tuesday notified start of sugarcane crushing season 2021-22 in the province from November 15.

The food department has directed the owners of sugar factories situated in southern Punjab to start crushing of sugarcane not later than November 15, 2021, while sugar mills situated in the rest of the province shall start crushing not later than November 20, 2021.

It may be added here that according to the Section 08 of the Punjab Sugar Factories (Control) Act 1950, the provincial government has to notify the start of crushing season every year and millers have to abide by the dates.

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