The Utility Stores Corporation (USC) is selling sugar for Rs. 94 a kg while the open market rate is Rs. 90 a kg.
Contrary to the claims by the Ministry of Industries and Production that the price of sugar has not increased, USC has been selling sugar at the aforementioned price to consumers who fail to show their identity cards at the time of purchase.
Sources informed ProPakistani that the USC had purchased sugar at Rs. 81.99 per kg through two tenders that were opened on 27 March and 4 April after canceling a tender to buy sugar at Rs. 86 per kg in February because of a market crash when the ex-mill price had reached Rs. 78 per kg in February.
The tender could not be reissued due to mismanagement within USC and the delay had led it to buy expensive sugar from the market as the ex-mill price of sugar jumped to Rs. 81.99 per kg in March, for which a tender was issued, as revealed by the sources.
Sugar Manager USC, Khursheed Abbas, stated that the tender was delayed due to the Pakistan Procurement Regulatory Authority’s (PPRA) rules. He explained that the tender for the purchase of sugar was awarded to the sugar mill in Rahim Yar Khan and the increased cost of transportation had effectuated the elevated price of sugar.
He also told ProPakistani that the next tender for the procurement of sugar will be opened on 26 April.
Yesterday, the Ministry of Industries rejected media reports regarding a hike in the prices of sugar at utility stores during Ramadan. It announced in a statement that “after receiving reports of selling sugar at Rs. 94 per kg at some utility stores, the ministry took strong notice and started investigation (sic)”.
The statement also detailed that sugar is being sold at Rs. 85 per kg in all utility stores across Pakistan. Furthermore, the government is monitoring the smooth supply of all eatable items at subsidized rates at all the utility stores.
