Sugar prices surge amid reports of export ‘permission’
KARACHI: Domestic sugar prices have risen by Rs10 to Rs150-150 per kg in different parts of the country amid reports that the government is under pressure from millers to allow the export of one million to 1.5 million tonnes of the commodity.
Karachi Wholesalers Grocers Association (KWGA) Chairman Rauf Ibrahim said the wholesale price jumped Rs7-8 per kg in the last 10 days to Rs138-139 per kg on reports about likely permission for sugar exports.
He warned the government not to yield to millers’ pressure; otherwise, sugar exports would result in a sharp spike in local prices.
He said the price of sugar also rose by Rs10 per kg in Rawalpindi, Islamabad and Lahore.
Pakistan had ample stock with carryover from last year, and there is no need to create a panic-like situation by allowing sugar exports.
Mr Rauf recalled that consumers paid up to Rs185 per kg last year in the retail markets due to a demand-supply gap caused by sugar hoarding and smuggling.
Surprisingly, the wholesale and retail prices fixed by the Commissioner Karachi are Rs123 and Rs130 per kg, respectively, which the consumers hardly find at any shops.
Pakistan’s sugar exports stood at 33,101 tonnes ($21 million) during 9MFY24 compared to $172,182 tonnes ($83m) in the same period last fiscal year.
Prime Minister Shehbaz Sharif chaired a meeting with the stakeholders on Tuesday to discuss sugar exports, domestic requirements, and preventing future shortages.
The meeting also discussed steps against sugar hoarding and smuggling, as well as a crackdown to combat a shortage in the market and an artificial price hike.
Millers were of the view that sugar surplus stocks stand at 1.5-1.6m tonnes, which should be exported to fetch foreign exchange.
They have also asked the government to allow exports in phases — one million tonnes in the first phase and the rest by May and June.
Published in Dawn, April 25th, 2024