CHANDIGARH: Two days after the Punjab Food and Civil Supplies Department conducted a series of raids and seized 1.07 lakh quintals of sugar worth Rs.39 crore, the wholesale prices of sugar have dipped by Rs.200 a quintal.
The wholesale rate has come down to Rs.3,000 a quintal from Rs.3,200 a quintal. However, retail prices continued to rule firm at Rs.33-34 a kg as retailers are reluctant to bring them down in tune with the wholesale rates.The seizure of sugar worth Rs.39 crore during raids on a Ludhiana-based wholesaler is considered one of the highest seizures in the State so far. Sugar production in Punjab during 2008-09 was expected to total 24 lakh quintals against 53 lakh quintals the year before because of a sharp fall in the area under the crop. The State Government has fixed a stock limit of 2,000 quintals for sugar under the Essential Commodities Act to control sugar prices.