The government has decided to fix sugar prices in order to stabilise its rate in the market after action against the sugar mafia failed to impact prices of the commodity, The News reported on Sunday.
The development comes amid surging sugar prices across the country. According to reports, sugar is now being sold for up to Rs110 per kg in different parts of the country.
This despite an early and improved domestic sugar harvest when compared to the one last year and the import of significantly large quantities.
In this regard, a meeting was held under the direction of the federal government, Saturday in the provincial metropolis where it was decided in principle to fix the ex-mill sugar price at around Rs82 per kg.
The government wants to ensure reasonable prices before the onset of Ramadan.
A senior official of the Punjab Food Department said that after getting a formal green signal from the federal government, the new price of sugar is expected to be announced by Tuesday.
The announced price will at least be lesser by around Rs10-15 per kg than the prevailing prices of the sweetener.
There have been efforts made to curb price hike which has been increasing in the country at a time when warehouses are full of the newly manufactured surplus commodity.
Official sources told The News that sugar stocks of mills would be seized if manufacturers do not follow the new price mechanism. Following new legal initiatives, the government now has sweeping powers about streamlining the sugar supply chain, said sources.