Before I read this article on the Dawn newspaper website, I did not know any of the basics of econmics making it hard for me to understand what the article was talking about. I did the best I could at interpreting the article with no knownledge of "fixed prices" in the US let alone in Pakistan. Feel free to correct me if I am completely wrong.
There’s a shortage in sugarcane, which is causing the demand to be even greater. If there’s a high demand and a low supply then it allows for prices to be raised. This allows companies to fix prices at a certain level and doesn’t allow for equal competition in the industry. In the case of sugarcane prices in Karachi, the price was fixed at Rs103 per 40 kg. The season was short for sugarcane, which didn’t allow for full revenues to be produced thus reaching full economic capacity.
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