Sugar prices swell to Rs185 per kg
KARACHI: A direction of the Economic Coordination Committee (ECC) on Monday to the relevant agencies to check the hoarding and smuggling of sugar has failed to bring any respite for the consumers as the rates of the sweetener have swelled further.
Traders said that the wholesale rate had ranged between Rs164 per kg, up by Rs4 per kg from Monday, thus putting extra pressure on the retail prices which increased to Rs180 per kg from Rs170.
Retail marts and online stores were cleverer than retail shop owners quoting sugar rates up to Rs185 per kg on Tuesday from Rs170-175.
Rising wholesale rates have been providing extra opportunities to various online mart and retail shop operators to make a windfall on the already piled-up stocks.
Amid the lack of any writ in the 16 months of the PDM government, consumers believe that the caretaker set-up is more disappointing following the Rs20 per litre rise in petroleum products, record rupee depreciation against the dollar and persistent rise in various commodity prices.
Market traders said it seems sugar continued to be smuggled to Afghanistan through informal channels followed by unabated hoarding and speculation. Rising prices appear surprising as sugar stocks in the country stood at 2.27m tonnes.
Pakistan’s sugar export during FY23 stood at 215,751 tonnes fetching $104m against nil exports in FY22. Exports during July were 5,542 tonnes earning $3.4m as compared to zero exports during July 2022.
The government had allowed the export of 250,000 tonnes of sugar in January based on the undertaking by the Pakistan Sugar Mills Association (PSMA) that sugar rates would not rise above Rs 85-90 per kg (ex-mill) for FY22 stocks.
Karachi Wholesalers Grocers Association (KWGA) Chairman Rauf Ibrahim asked when the writ of the caretaker government would be visible as sugar wholesale rates have risen by Rs21 per kg since Aug 1.”
He said no efforts are being made to check the stocks of the sugar mills and hoardings by the investors and speculators. “The Supreme Court should take a suo Moto notice on soaring food items prices like sugar, wheat and rice and their hoardings,” he added.
Rauf said the government is also losing revenue due to the rampant smuggling of sweeteners to Afghanistan.
Source Link: https://www.dawn.com/news/1773025
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