Sugar price jumps by Rs7/kg

By
fraaz
-
17
311

Soon after the government allowed export of sugar, price of the highly consumed item in domestic market jumped by Rs7 per kilogram on Saturday.
Sugar, which was available at the wholesale price of Rs48/kg in January 2012, has now increased to Rs54 on Saturday recording an increase of Rs6/kg, while the commodity at retail outlets is now available at Rs59/kg as compared to the previous price of Rs52/kg. As the powerful sugar millers, both in government and opposition parties have successfully forced the concerned authorities to allow export of the commodity, the price of sugar at wholesale and retail market has started going up since January this year.
According to Karachi Retail Association General Secretary Fareed Qureshi, the commodity available here in wholesale market at Rs45 to Rs48/kg during January and February had jumped to Rs50/kg by March 1. However, price of the commodity was suddenly increased by Rs4/kg on March 3, pushing the wholesale rate of sugar to Rs54/kg.
It is worth mentioning here that the price of the kitchen item has started increasing as a result of the government’s recent move of relaxing a ban on sugar export. It has allowed the private sector to export 100,000 tonnes, a move aimed at stabilising prices in the local market and resolving cash flow problems of mills. The government had banned sugar export in 2009. Sugar contracts were settled at $634.2 per tonne in the London Futures Exchange.
All Pakistan Sugar Mills Association (APSMA) had welcomed the move claiming that it would partly resolve cash flow problems of the mills. Ex-factory price of sugar is Rs45-46/kg, while in the wholesale market it is being sold for Rs48-50/kg. A few months ago, the prices were above Rs65/kg. The government, according to sources, was also likely to allow export of another 200,000 to 300,000 tonnes by the end of March, due to an expected bumper crop.
Besides that the government was already purchasing tonnes of sugar from the local millers to arrest the price fall after they complained that they were suffering from huge losses. However, further export, cartelisation and price manipulation of prices would also cause more increase in the rate of the commodity in local market. To convince the government for further export and purchase of sugar, the millers had informed the Economic Coordination Committee that sugar stocks from the 2010-11 crushing season stood at 900,000 tonnes and this year’s crop was expected to give a record production of 4.5 to 4.9 million tonnes. Annual consumption was estimated at 4.2 million tonnes.

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17 COMMENTS

  2. This Rs 7 increase in sugar prices will translate into billion in more profit for owners of sugar mills which mostly belog to corrupt politicians of Pakistan. More blood sucking by rulers and politicians, Now they can enjoying drinking people blodd with every breakfast, luch and dinner they have.

  3. What a price movement is this ? Just a permission for sugar exports increases Rs.7 per Kg. Whenever India govt permits sugar exports last month not a single Rs increase there .In India Sugar is still trading @ Rs.30/Kg in retail markets.

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