KARACHI: In response to rumors that the government is facing pressure from millers to permit the export of one million to 1.5 million tonnes of the commodity, local sugar prices have increased by Rs10 to Rs150–150 per kg in various regions of the nation.
According to Rauf Ibrahim, the chairman of the Karachi Wholesalers Grocers Association (KWGA), the wholesale price increased by Rs7-8 per kg during the previous ten days to Rs138–139 per kg due to rumours of a potential permit for sugar exports.
He cautioned the government against caving in to pressure from the millers since doing so would cause local prices to surge sharply in response to sugar exports.
He stated that in Rawalpindi, Islamabad, and Lahore, the cost of sugar increased by Rs. 10 per kg.
Pakistan already had a surplus of sugar from the previous year, so there’s no need to authorize exports in order to incite fear.
Mr. Rauf noted that due to smuggling and hoarding of sugar, there was a demand-supply mismatch in the retail markets last year, with customers paying as much as Rs. 185 per kg.
The Commissioner Karachi set wholesale and retail prices of Rs 123 and Rs 130 per kg, respectively, which are surprisingly hard for customers to find at any stores.
In 9MFY24, Pakistan’s sugar exports totaled 33,101 tonnes ($21 million), down from $172,182 tonnes ($83 million) during the same period in the previous fiscal year.
Tuesday’s meeting with the stakeholders was presided over by Prime Minister Shehbaz Sharif, and the topics of discussion included sugar exports, local needs, and averting future shortages.
The meeting also covered measures to prevent the hoarding and smuggling of sugar, as well as a campaign to counteract market shortages and fake price increases.
Millers believed that the 1.5–1.6 million tonnes of sugar that were in excess should be exported in order to generate foreign cash.
Also, they have requested that exports be permitted in stages, with one million tons being allowed in the first phase and the remaining amounts by May and June.
