KARACHI, July 5: The Utility Stores Corporation (USC) on Saturday jacked up the price of sugar by Rs6 to Rs31 in one-go, from Rs25 per kg, followed by recent increase in rates of gram pulse, rice, ghee and cooking oil etc.

In the retail market, the rate of white sweetener surged to Rs32 from Rs30 per kg.

The gram pulse at the utility stores was now being sold at Rs50 against Rs29 per kg three days back. In the retail market, the same quality pulse was available at Rs64 per kg.

The price of Super Kernal Basmati was tagged at Rs93 from Rs80 per kg last week at government’s stores. In May, the super kernel basmati price had been increased to Rs72 from Rs60 per kg. In retail market the same brand is priced at Rs125 per kg.

About 15 days back, the price of subsidised ghee and cooking oil pouch of one kg was raised to Rs120 from Rs100 per kg. In May this year, the USC had raised the rate of one kg pouch ghee and cooking oil to Rs80 from Rs67.

Sources at USC told Dawn that the increase in sugar price by Rs6 per kg on Saturday was because of withdrawal of subsidy on sugar.

They said that the Trading Corporation of Pakistan (TCP) had not been providing sugar to the USC for the last 15 days and resumed from Saturday at higher rates.

Similarly, the USC had not been getting wheat from the TCP and Passco for the last one month and on Thursday it got only 40,000 tons.

Sources said that the government’s decision of withdrawing food subsidy had started making impact at the utility stores, which would definitely hit the consumers.

An USC official said the rush of buyers at the stores has subsided after a continuous fall in the gap between retail market prices and utility stores’ prices. He added that few months back, the gap between retail prices and utility stores’ prices in various items had been 70-100 per cent in ghee and cooking oil, and wheat flour, etc.

In case the subsidy on food items at utility stores continues to be withdrawn then these