ISLAMABAD; The sugar prices have seen unprecedented surge of Rs 18 per kg in the last one week.
It clearly indicates monster of sugar pricehike is back again to bit the end consumers.
The sugar rates have gone up (ex-factory) from Rs 70 to Rs 88.50 a kg in just last one week, showing an increase of Rs 18.50 per kg.
Likewise, sugar rates at retail level have jumped up to Rs 98 and in some cities to Rs 100 from Rs 84 in the last 8 days.
None of the stakeholders makes any solid guess where sweetener rates will end up in the coming days and weeks.
However, everyone in sugar sector (millers, whole sale dealers, sub dealers and retailers) is convinced the sweetener was going to become costlier than ever in 2021. In 2020, sugar rates had touched maximum level of Rs 110 a kg at retail level.
An Islamabad- based dealer told NEWSMAN on the condition of not quoting his name in the story that the future buying was being done by majority of the dealers as they predict more sharp increase in sugar rates in coming months.
The millers attach sudden major increase in sugar rates with short crop of sugarcane and subsequent price war among mills to buy sugarcane to keep crushing going. They claim sugarcane which should have been available to the mills at officially fixed rate of Rs 220 per 40 kg was being sold to the mills at Rs 260 and in some areas at Rs 290 or Rs 300 per maund.
This is natural if sugarcane prices go up it will stoke sugar prices proportionately for the end buyers.
According to a Pakistan Sugar Mills Association (PSMA) member, the sugarcane price hike issue has already been brought into the notice of the federal government so that it takes some measures to ensure supply of sugarcane to the mills at official rates.
“We have informed federal minister for Industries, Mian Hammad Azhar, in writing to keep him informed on what was the situation of sugarcane prices on ground and how it can impact sugar prices in the open market”, the PSMA member divulged when approached by NEWSMAN for comment on sudden big increase in sugar prices in recent days.
The member added PSMA can not do anything but keep posting the cause of sudden and sharp increase in sugar rates as if the mills get sugarcane at 33 per higher rates for crushing it will ultimately push up sugar rates in the market..
This scribe also spoke to Farmers Association of Pakistan (FAP) office bearer, Rabia Sultan, who is a progressive grower from southern Punjab,to get growers point of view on the issue in hand.
Rabia Sultan attaches sugarcane price hike with the millers buying spree.
Rabia Sultan said “Keeping in mind short crop this year, the millers have started to buy sugarcane from far flung areas and it could naturally put the crop prices at higher end, but it could not be the only reason of unprecedented increase in sugar prices right im the middle of crushing season.
Rabia’s logic do carries some reasoning. Even if one takes higher side of the sugarcane prices, even then the recent increase of Rs 18 or so per kg in one week can not be justified.
Whatever the reason of sugar pricehike could be, one must thank to
prime minister, Imran Khan, who was ballooning his ministers and advisors to bring sugar price down just a couple of weeks ago.
His understanding on the issue also need to be ‘appreciated’ . He congratulated his ministers and advisors who had nothing to do with lowering prices of sugar last month as it is a common phenomenon at the start of crushing season.
Will his “wise” ministers and advisors get patting from their visionery leader for what is going on in the sugar market. They should also inform their “visionery”leader that the end consumers were paying around Rs100 for one kg of sugar right in the middle of crushing season.
This poor nation can not forget the same had happened in the case of wheat in 2020 that resulted in year long flour crisis.