Sugar, rice prices soar in wholesale markets

With the upcoming fiscal year's budget implementation looming, wholesale markets have begun raising prices.
The price of a 50kg sugar sack rose by Rs300 on Wednesday, and an additional Rs200 increase is expected this week, pushing the retail price of sugar up by Rs10 to Rs190 per kg.
The price of tea leaves reached Rs2,200 per kg, while lentils and rice saw per-bag increases of Rs350 and Rs400, respectively.
Wholesale traders have warned that new prices for all grocery items will be issued within the next ten days due to newly imposed taxes.
They have also reduced the supply of sugar, rice, and lentils by 30 to 40 per cent, causing shortages in stores across the city.
Grocery Merchants Association President Salim Pervez Butt stated that prices of essential items like pulses, sugar, ghee, and rice are rising by Rs100 to Rs200 per bag daily.
Despite payments and orders, wholesalers are failing to meet demand. Rising fuel prices have also made transportation more expensive.
He criticised authorities for targeting small retailers while ignoring large-scale price hikes by wholesalers.
He questioned the early increase in prices, given that new taxes are set to take effect on July 1. Fears are mounting that milkmen, butchers, and bakers will also raise prices of milk, yoghurt, meat, and bread in July due to these tax measures.

Try Our AI Features

Explore what Daily8 AI can do for you:

Learn with AIFact CheckingText to SpeechAI Summary

Related Articles

Business Recorder

3 hours ago

• Business Recorder

Balochistan needs a development lifeline

EDITORIAL: The Balochistan government has presented a budget with total receipts of Rs1028 billion and expenditures of Rs991 billion, which have been revised downward slightly to achieve a higher cash surplus of Rs51.5 billion. The smallest province by population and the largest by area has utilised its entire development budget of Rs 219 billion for FY25 — a first in the province's history. The development budget for FY26 is proposed at Rs350 billion. The fiscal austerity being pursued by the federal government includes extracting a 'pound of flesh' from the provinces in the form of surpluses — a burden that is taking a heavy toll on Balochistan, the least developed province in the country. Budgetary allocations are primarily based on population size, with only minor adjustments for inverse population density. With a sparse population, Balochistan's budget allocation is perennially low. It's a chicken-and-egg problem. The province needs infrastructure development and investment in social sectors. Due to low population density, the per capita requirement is high. Without adequate spending, growth in the province remains stunted. And with low growth, compounded by a weak law and order situation, there has been little to no immigration from other provinces — in fact, settlers have been leaving Balochistan for years, primarily due to security concerns. To reverse this trend, better economic opportunities for local residents are essential — and for that, higher development spending is required. Balochistan is rich in minerals. Pakistan's political and military leadership sees the country's future success in the extraction of minerals and rare earth metals — most of which are located in Balochistan. Reko Diq is believed to be a game changer for Pakistan. And indeed, the project is finally progressing in the right direction. However, it cannot serve as a harbinger of growth if it develops in isolation, like a fortress in the middle of nowhere. True development lies in building vibrant cities around such projects. That's what's missing — and without it, many other projects will face similar hurdles. In the past, Balochistan also relied on royalties from oil and gas fields, which are now declining due to falling production. New explorations and productions are limited, owing to a range of factors — all of which are tied to the broader issue of development and investment in the province. Historically, gas from Balochistan has largely been used to fuel the rest of the country, with only a small share allocated to the province itself. Other provinces in Pakistan are densely populated and need some degree of population redistribution. Ideally, this would involve incentivising the movement of people to Balochistan — which in turn requires a skilled workforce and private capital investment. And, above all, there is need for a suitable constitutional arrangement with a sunset clause to ensure that the Baloch do not become a minority as regards their share in the provincial or national legislatures. But that cannot happen without an environment that is characterised by good infrastructure, improved security and the needed political sagacity to address their reservations as regards massive influx of people from other provinces. The private sector is unlikely to take the lead. This is the responsibility of the government. And for that, better budgetary allocation is essential. While the federal government is fiscally constrained and seeking additional resources, provinces are expected to generate their own revenues. Better-developed provinces — like Punjab and Sindh — may be positioned to do so. But applying the same expectations to Balochistan creates an uneven playing field. The ongoing Iran-Israel conflict has further heightened Balochistan's strategic importance. This is the right moment for the authorities to seek greater funding — both domestically and from international partners — to enable the development of Balochistan and address the longstanding grievances of its people. Without bringing Balochistan up to pace, sustained economic growth in Pakistan will remain a distant dream. Copyright Business Recorder, 2025

Express Tribune

7 hours ago

• Express Tribune

Sugar, rice prices soar in wholesale markets

With the upcoming fiscal year's budget implementation looming, wholesale markets have begun raising prices. The price of a 50kg sugar sack rose by Rs300 on Wednesday, and an additional Rs200 increase is expected this week, pushing the retail price of sugar up by Rs10 to Rs190 per kg. The price of tea leaves reached Rs2,200 per kg, while lentils and rice saw per-bag increases of Rs350 and Rs400, respectively. Wholesale traders have warned that new prices for all grocery items will be issued within the next ten days due to newly imposed taxes. They have also reduced the supply of sugar, rice, and lentils by 30 to 40 per cent, causing shortages in stores across the city. Grocery Merchants Association President Salim Pervez Butt stated that prices of essential items like pulses, sugar, ghee, and rice are rising by Rs100 to Rs200 per bag daily. Despite payments and orders, wholesalers are failing to meet demand. Rising fuel prices have also made transportation more expensive. He criticised authorities for targeting small retailers while ignoring large-scale price hikes by wholesalers. He questioned the early increase in prices, given that new taxes are set to take effect on July 1. Fears are mounting that milkmen, butchers, and bakers will also raise prices of milk, yoghurt, meat, and bread in July due to these tax measures.

Express Tribune

a day ago

• Express Tribune

Senate rejects 18% tax on solar panels

Listen to article The Senate has approved with a majority vote the report of its standing committee on finance—rejecting an 18% tax on solar panels, sales tax on homeopathic items and stationery, and tariffs on the steel sector. In its report, presented in the upper house of parliament on Saturday, the committee also opposed increased taxation on 800cc vehicles, suggesting a 12.5% cap. It proposed no increase in tax on print media and IT services and urged that taxes on services falling under provincial jurisdiction be reconsidered. It also called for a review and further increase in government employees' salaries. The committee also proposed setting the minimum wage at Rs40,000 or Rs50,000 and exempting income tax for monthly salaries up to Rs100,000. The Senate session began under the chairmanship of Deputy Chairman Syedaal Khan Nasar. During the session, Senate Standing Committee on Finance Chairman Saleem Mandviwalla, presented the report containing the budget proposals and recommendations. Earlier, Senate Leader of Opposition Shibli Faraz objected that the report had not been presented to them earlier and questioned how a 100-page document could be read and reviewed in 10 minutes. He criticized the government for not reducing its expenditures and instead taxing those already burdened with taxes. Responding to the criticism, Senator Mandviwalla stated that he had remained in contact with Shibli and Mohsin Aziz of the PTI. He said all parties, including the PML-N, the PPP, and the PTI, participated in the discussions, offered suggestions, and voiced their concerns. He said the committee staff worked till 2 am and while the draft may not have been shared due to an oversight, all recommendations in the final version reflected the committee's discussions. Concluding the budget debate, Finance Minister Muhammad Aurangzeb acknowledged the valuable, balanced, and constructive input provided by senators over the past one and a half weeks. He said this consultation helped guide the government's economic policies and reinforced its commitment to transparency, fiscal responsibility, and sustainable development. "During the past fiscal year, no mini-budget was introduced, inflation was brought under control, foreign reserves increased, and the current account improved significantly," he added. He announced tax relief for salaried individuals earning between Rs600,000 and Rs1.2 million annually by reducing the income tax rate from 2.5% to 1%. This, he said, was a symbolic and practical gesture to show that the government does not wish to overburden the middle class. He also announced a 10% increase in government employees' salaries and a 7% raise in pensions. Taxes on agricultural pesticides were removed, and, following the prime minister's direction, 1,000 graduates would be sent to China for further opportunities. Regarding solar panels, the finance minister said the proposed 18% sales tax on imported parts was meant to protect local industry and create a competitive environment for solar technology investment in Pakistan. However, after consultation, the government decided to reduce the tax to 10%, applicable only to 46% of imported components, resulting in a 4.6% price hike for imported panels. He warned against profiteering, noting that some opportunistic elements had already begun increasing prices before the tax's implementation. He assured that the government would take strict legal action against such exploitation in the public interest. Aurangzeb said the relief and social protection measures included in the 2025-26 budget are not merely temporary reliefs but a practical reflection of the state's recognition and acceptance of its responsibilities. "A key measure is the increase in the budget of the Benazir Income Support Programme (BISP) from Rs592 billion to Rs716 billion. "Expanding the scope of financial assistance under BISP reflects the government's commitment to providing economic protection to the most vulnerable segments of society," he added.