Sugar ex-mill rate jumps to Rs27/kg

KARACHI - Like other food items, the hoarding of sugar is also on the surge, which is resulting in continuous upward trend in the sugar prices as ex-mill rate of commodity increased to Rs27 per kg from earlier price of Rs 24/kg in the country, The Nation learnt on Monday.

The increasing trend of hike in ex-mill prices has caused sharp surge in retail prices of the commodity, which was being sold at Rs32-per kg and above in Karachi. The market analysts were of the view that hoarding factor has been involved in the recent surge in the prices of white sweetener as profiteers were watching the increasing trend of prices of other food items, they have starting hoarding sugar in large quantity.

The ex-mill rate of the white sweetener was Rs22.50-per kg including sales tax in first week of this month, which reached to Rs27-per kg in Punjab and Rs26.50-per kg in Sindh on Monday. However, a wide gap of Rs4 to Rs6 is being witnessed in the prices in ex-mill rate and retail prices of sugar in country as commodity is being sold at Rs32-per kg and above in retail against ex-mill rate of Rs27-kg.  

The current ex-mill price of Rs27-per kg is very close to the demand of sugar mills owners body PSMA who was insisting for fixation ex-mill rate at Rs29.50-per kg.

Keeping in view the current upward trend in the prices of sugar, the ex-mill rate of 29.50 per kg might be seen in next few days, market analysts opined.

A representative of Pakistan Sugar Mills Association while talking to The Nation disclosed that mostly the mills have sold their sugar stocks in market while few mill owners were exporting the commodity on marginal profit because the industry was not getting suitable return.

Attributing the recent surge in the prices in the sugar he said, the traders have hoarded sugar to create its shortage.

After creating crisis of wheat and rice by hoarding, the profiteers were involved in stocking of white sweetener; PSMA representative commented and added, the sugar mills were not the real beneficiaries of sharp increase in the sugar prices as they have already sold their major stocks at cheaper prices.

He said the government committed that Rs 29.50 per kg ex-mill sugar price would be maintained through the TCP mechanism but government had not fulfilled its commitment. Presently there was no shortage of sugar persists in the country as sufficient stocks were lying with TCP, PSMA representative said and observed that these profiteers could create artificial shortage of commodity by manipulating the situation due to govt's non-serious attitude towards the crisis.