Pakistan stares at another crisis as sugar prices rise to Rs 185 per kg

INTERNATIONBAL DESK: Sugar prices in Pakistan have increased to Rs 185 per kg, with the country’s Economic Coordination Committee (ECC) asking relevant agencies to check for the hoarding and smuggling of sugar, Dawn reported.

The rising wholesale rates have been providing an opportunity for various online mart and retail shop operators to make a windfall on the already piled-up stocks.

Market traders claimed it appeared that sugar continued to be smuggled to Afghanistan through informal channels followed by unabated hoarding and speculation, Dawn reported, adding that the price rise was surprising as sugar stocks in the country stood at 2.27 million tonnes.

Pakistan’s sugar export during FY23 stood at 215,751 tonnes fetching USD 104 million against nil exports in FY22. Exports during July were 5,542 tonnes earning USD 3.4 million as compared to zero exports during July 2022.
The Pakistan government allowed the export of 250,000 tonnes of sugar in January based on the undertaking by the Pakistan Sugar Mills Association (PSMA) that the rates would not rise above Rs 85-90 per kg (ex-mill) for FY22 stocks.

Karachi Wholesalers Grocers Association (KWGA) chairman Rauf Ibrahim demanded that the caretaker government clarify when its writ would be followed to the letter as wholesale sugar prices have risen by Rs 21 per kg since August 1, as per Dawn.

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. (BS)