The price of sugar at Utility Stores and the open market has equalised due to which Utility Stores are loosing effectiveness in the public, Pakistan Today has learnt.
Sale of sugar at Utility Stores has also decreased and consumers are buying sugar from the open market. When price of sugar in the open market was roaming at Rs 70 to 75 per kg then price of sugar at Utility Stores remained Rs 56 per kg but now the price of both markets is almost equal. The federal government provided Rs 2 billion subsidy for stores during Ramadan and prices were quite low.
Consumers have often complained of quality of sugar being sold at Utility Stores but because of low price, they had no option but to buy from Utility Stores. The price of sugar at Utility Stores is Rs 56 per kg while in the open market it could be purchased between Rs 56 to 60 per kg. The quality and sweetness of sugar sold at Utility Stores is not good while in the open market it is good. As a result, consumers are more inclined towards the open market sugar and sales at stores have dropped, said official Azam Ismail at the Township Utility Store. He said that the price of sugar was quite high in the open market some two months ago, therefore, people preferred to buy it from Utility Stores but now the situation is different. Ismail said sales at stores have dropped more than 60 percent because of this reason.
“We used to sell around 50 to 60 kg sugar on a daily basis in normal days but now we are selling only 10 to 16 kg,” he added. A senior official of Utility Stores, seeking anonymity, said that now there was no subsidy on sugar prices, therefore, there is hardly any attraction for consumers. On question of quality of sugar, he said that the product is procured by the Trade Corporation of Pakistan (TCP) and the Utility Stores administration cannot do anything in this regard.
Sources said that the TCP purchased sugar at higher rates and now it is not possible for the federal government to further lower sugar prices at Utility Stores. “Sugar was purchased at Rs 62 to 65 per kg and now a further decrease would burden the national exchequer,” sources added.
Consumers demanded the federal government to lower sugar prices at Utility Stores so that the real object of these stores could be obtained. “The USC was established to help the middleclass against price hike but this object could not be achieved at least in sugar prices,” said consumer Sadeed Malhi, adding that he used to purchase sugar from Utility Stores but this month he purchased it from the open market. “The quality of sugar in open market is far better than Utility Stores,” he added.
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