Sugarcane prices go up to over Rs200/mon

Sugar price may jump further in next few months Commodity smuggled to Afghanistan, Iran during last couple of months Though the farmers growing Sugarcane in the country are crying for low prices of their products, the jump in its price to over Rs200 per 40 kilogram may cause further increase in the rate of the highly consumed commodity during next few months.
As the production of sugarcane this year has been reported at around 4.7 million tons against the expected figure of 5 million tones, the growers have increased the price of agricultural product to over Rs 200/mon or Rs 5/kg as compared to previous rates Rs 3-4/kg, a sugar miller who did not want to be named claimed.
Besides, a good quantity of sugar, he claimed, has been smuggled to Afghanistan and Iranthe two neighboring countries during the last couple of months due to the huge difference in prices of the commodity.
The commodity, which was available at Rs 45 to Rs 48/kg in Pakistan was being sold at retail prices of Rs 100/kg to 105/kg in the two neighboring countries technically forcing the traders here to sale the commodity abroad through the smuggling or illegal means, he said adding that currently some quantity of sugar was being sent to Tehran through the barter system. “The Iranian demand of 0.2 million tones of sugar from Pakistan made recently also proves that the commodity, because of its price differential, has a high demand in the foreign country,” he claimed.
He claimed that the imported sugar in Afghanistan was being reached in Kabul with the landed cost of over $ 750 excluding taxes which makes the wholesale rate of the commodity to at least Pakistani Rs 89 to Rs 90/kg. However, the same commodity just outside the border was available at Rs 52 to Rs 59/kg encouraging the smuggling of the highly consumed commodity.
Adding weight on his claim expected jump in sugar price from May to September this year, the miller said that as the consumption of the commodity would be increased in summer season, the price of the kitchen item could be around Rs 65 to Rs 70/kg during the season.
He, however, said that the farmers who were already reconsidering to grow other crops due to the lower price they obtained by the fresh crop, should be facilitated with more than Rs 250/mon. He feared that the low production next season would also cause prices to rise, and again, which in turn would attract more farmers the following year to grow sugarcane. On the other hand sources claimed that the growers largely were even unable to get the government’s set a price of Rs3.75/kg, from sugar millers. In addition, production costs have risen, which has further squeezed margins for most
farmers. It is worth mentioning here that the price of sugar, during the last couple of days have jumped by Rs 7/kg in retail market after a historic decline up to Rs 48/kg.