950819

Sugar seized

by FIA to be

sold at Rs 13

per kilogram

ANWAR RAJANI

KARACHI: White sugar seized by the government from the godowns of sugar mills and sugar dealers will be sold at Rs 13 per kg at Utility Stores and Juma Bazars.

Supply of the sugar so far seized by the FIA has already started coming to the Utility Stores. The arrangement for sale at Juma Bazars is yet to be finalised.

According to informed sources, the government will pay something over Rs 12 per kg to the stockists and mill owners from whom the sugar has been seized.

At present sugar prices range between Rs 17 and 17.50 per kg. Therefore, the government decided to seize the stocks and sell the sugar to consumers at reasonable prices.

About four months ago, the government had allowed the export of three lakh tons of sugar. At that time the ex-factory price was between Rs 11.50 and 12 per kg.

The retail price then was Rs 14 per kg.

Now with the increase in ex-mill price, the retail sale price has touched the figure of Rs 17.50 per kg.

Market sources said that the consumers will now heave a sigh of relief following the government decision to sell the commodity at Rs 13 per kg.

It is reported that raids are still continuing and more stocks will be seized within a couple of days. At present over seven lakh tons of sugar is reportedly lying with the mills all over the country.

Until Saturday about 15 lakh bags (75,000 tons only) have been seized by the FIA.

Market sources said that the raids by FIA on the godowns may stop if the mill owners came forward to bring down the prices of the commodity voluntarily.

Sources said that the government had resorted to conducting raids since the mill owners had backed out of their earlier commitment that there would be no price hike in case the government allowed the export of sugar.