Sugar price soars to Rs 28.50 per kg

KARACHI - Like other food items, the upward trend in the prices of sugar has also been observed as the ex-mill rate of the commodity surged to Rs 28.50 per kg from earlier price of Rs 27 per kg in the country, it has learnt here 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 Rs 32-33 per kg in Karachi.
The current ex-mill price of Rs 28.50 per kg is very close to the demand of sugar mills owners’ body, PSMA, who was insisting for fixation of ex-mill rate at Rs 29.50 per kg.  
Keeping in view the current upward trend in the prices of sugar, the ex-mill rate of Rs 29.50 per kg might be seen in next few days, market analysts said. They said that the hoarding factor had 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 had starting hoarding sugar in large quantity.
Meanwhile the president of Pakistan Sugar Mills Association (PSMA) Zaka Ashraf while talking to The Nation via phone from Lahore termed this increasing trend in the prices of sugar was good news for sugar industry as they were force to sale their product on cheaper rates than actual cost of production.
He pointed out that sugar price crisis arose due to mismanagement in handling of the issue by the government. He said that normal sugar sale and purchase had been started in the market which had previously come to a standstill as the sugar prices had crashed in the market. “Now when the sugar prices are coming to normal levels of Rs 28.50-29 per kg, the sugar buyers have now started to come forward for purchasing, as the buyers are reluctant to buy where the market is in depression.�