Sugar prices have increased in Lahore’s open market following the Punjab government’s decision to impose a new sugar cess.
According to market sources, the price of sugar has gone up by Rs. 10 per kilogram, pushing the retail rate to Rs. 160 per kg. Traders say the fair market price should have remained around Rs. 150 per kg.
After the increase, a 50-kg bag of sugar is now being sold at Rs. 7,500, while the official ex-mill price stands at Rs. 135 per kg.
No Shortage, Say Traders
The Karyana Merchant Association has clarified that there is no shortage of sugar in the market, and supplies remain stable despite the price hike.
Reason Behind the Price Increase
The Punjab government imposed a sugar cess of Rs. 5 per 40 kg bag effective January 1. Under this policy:
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Rs. 2.50 is paid by sugar mills
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Rs. 2.50 is borne by farmers
Market participants believe this levy has directly contributed to the rise in retail prices.
