Another increase in sugar, flour prices shocks consumers
KARACHI: Already struggling to find ways to pay inflated electricity bills, consumers suffered another shock due to a further hike in the prices of sugar and different varieties of flour.
Just two days after the takeover of the new caretaker government, consumers had seen a Rs8 per kg rise in wholesale prices of sugar to Rs153 per kg, thus pushing up the retail rates up to Rs160 per kg and up to Rs170 per kg in online stores.
On Saturday, wholesalers further raised the rate by Rs4 per kg to Rs157, thus pushing up retail prices to Rs170 per kg. At online stores, sugar rates are now quoted at Rs172 per kg, while some stores are offering the 500kg pouch at Rs95, which means two bags or one kg would cost Rs190 per kg.
In various cities, the average national price of sugar was hovering at Rs155-172 per kg during the week.
Commodity exporter/importer, Faisal Anis Majeed, said local sugar is finding way into Afghanistan and Iran through illegal channels, while hoarding and speculation of sweetener is also at its peak to make further windfall.
He feared more pressure on sugar prices in the region as India is reported to have imposed a ban on sugar exports on Friday.
Pakistan’s sugar export during FY23 stood at 215,751 tonnes fetching $104m against nil exports in FY22. Exports during July 2023 were 5,542 tonnes that earned $3.4m as compared to zero exports during July 2022.
Flour
Flour millers in Sindh had reduced the prices last Monday by up to Rs9 per kg in various varieties of flour as a result of a drop in wheat rate in the open market to Rs12,000 per 100kg bag from Rs12,500. Flour No 2.5 and fine/maida rates at that time were fixed at Rs137 and Rs146 per kg.
However, on Saturday, millers reversed the prices to Rs142 per kg for Flour No 2.5 and Rs150 per kg for fine/maida, showing a jump of Rs4-Rs5 per kg on a slight hike in 100kg wheat bag rate to Rs12,300 arriving from Punjab and Sindh.
Branded five and 10kg fine flour bags are currently being sold at Rs850-880 and Rs1,700-1,800 depending on the markets.
Millers have been fluctuating flour prices based on the open market wheat rate as the Sindh government would issue grain to the millers in October.
Pakistan Flour Mills Association (PFMA) Sindh Zone Chairman Aamir Abdullah claimed some millers have opened two to three letters of credits (LCs) for the import of Ukraine wheat at a price of $285-290 per tonne despite looming foreign exchange crisis. Ukraine wheat is expected to arrive next month and would cost Rs10,000 per 100kg bag.
When asked if rising value of the dollar against the rupee would make wheat imports unfeasible, he said imports had been initially started to offset demand and supply gap in the market and ensure price stability till October.
The national average rate of a 20kg flour bag now ranges between Rs2,800-3,200 as compared to Rs980-1,940 prevailing in the first week of July 2022.
Recommended for you
