Sugar Price increase is skyrocketing
Sugar Price increase is skyrocketing due to smuggling speculations or exports or something else. Export, Smuggling, or Speculation is the reason for the record rise in the price of sugar. Currently, the price of sugar in Pakistan is at the highest level in the country’s history. The price of sugar has been increasing for the past several months and its price, which was Rs 85-90 per kg earlier this year, has reached the level of Rs 180 in just eight months. Because of this, a common consumer is currently paying Rs 90-100 more than the price of sugar at the end of last year.
Food data in the country
The Federal Bureau of Statistics, which compiles food data in the country, has shown the price of sugar in different parts of the country between Rs 156 and Rs 165 per kg till the end of last week, but sugar in different parts of the country is Rs 180 per kg. According to traders working in the grain markets of the country, the ex-factory price of sugar is currently at Rs.168. The wholesale price has reached Rs 172 to Rs 175 and its retail price has reached Rs 180 per kg or more.
Price of Sugar in Pakistan
One of the main reasons for this increase in the price of sugar in Pakistan is the export of sugar abroad in the month of January by the previous PDM government, after which the price of sugar in the market started to increase. Related to the economy. Individuals and analysts attribute the increase in the price of sugar to the decision to export sugar. The working sugar mills are also currently under fire and blame for the rise in the price of sugar after they allow to export sugar on their demand. It has been deny and declare as contrary to the facts.
Export Sugar was Approved
The decision to export sugar approve by the previous PDM government in the month of January this year. In the month of March, the increase in the price of sugar start and a continuous increase was record. About this, Shehbaz Rana, a senior journalist of economic affairs, told the BBC that ‘when the decision was taken to export and the amount of sugar When the stock figures were given when independently review, there was not enough sugar in stock and the report consumption was less than the actual consumption.
FBR and Ministry of Industries and Production data
There was a discrepancy between the then FBR and Ministry of Industries and Production data, especially the sugar stock numbers. The sugar mill owners took two benefits from a political decision that was made.They say that ‘one, they earn foreign exchange by exporting sugar from the foreign market. On the other hand, when sugar export from here, the sugar which 85 rupees per kg went up to 180 rupees, so they took advantage of it. Commodity affairs expert Shamsul Islam also condemned the decision to export sugar as wrong. That usual increase in sugar consumption is record in Pakistan after the month of March because on one hand sugar consumption increases due to the summer season and on the other hand due to various festivals, its consumption also increases.
The smuggling of sugar in Pakistan from neighboring Afghanistan has also always been a problem. Smugglers cite as one of the reasons for the current increase in the price of sugar.
Smuggling is also Factor to Increase Sugar price
Shahbaz Rana said in this regard that it is true that on the one hand sugar export, on the other hand, smuggling also increase the price. He said that smuggling has always played a role in it, and this time too. He also said that when the decision was taken to export sugar, the figures present at that time was not correct, as it was said that the country’s sugar stocks enough for two months of consumption by November 2023. Now there is talk of depleting this stock and now it seems that we may have to import sugar.
Chairman Karachi Grocery Wholesalers Association Rauf Ibrahim told BBC that the decision to export sugar increased the price, but along with it, hoarding of sugar and speculation are also increasing the price of sugar. He said that an increase in the price by four rupees in one day. And by five rupees the next day is a sign that speculation is going on. He pointed out that the delivery by the sugar mills. And the orders issue are often anonymous. He said that delivery orders supply by sugar mills to sugar factories. Have the name of the factory and its sales tax number, however. Delivery orders issue at the individual level do not carry a name sales tax or income tax number.
Benami Delivery Orders
He said that there is no physical supply of sugar through these benami delivery orders. But it increases the price base on speculations. And the same is happening now because of the export of sugar in the local market. It has reduce and it is now two months into the new crushing season. It will take some time for new sugar to come into the market. So this create a situation where sugar is bet on. Which will further increase the amount is due to possibility.