Sugar prices started showing a declining trend following the announcement by the Punjab government to acquire the commodity in bulk from the Trading Corporation of Pakistan and offload it in the market at reasonable rates to facilitate consumers. Wholesale rates of sugar, which reached Rs 104 to 106 per kilogramme in Akbari Mandi, fell Wednesday to Rs 97 to Rs 98 per kilogramme. While the ex-mill rate fell to Rs 92 per kilogramme. Market sources hope further decrease in the prices on Thursday.
Lahore Sugar Dealers Association President Muhammad Asghar Butt told Business Recorder that provincial government's step to acquire 100,000 tons sugar from the TCP and offload it in the retail market of the province on subsidised rates brought an immediate positive impact. He said there was also panic buying due to rising prices of the commodity, but it eased after the news that provincial government would be bringing subsidised sugar through TCP.
Announcement by the sugar millers to start crushing season after Eid-ul-Azha also brought a positive impact. These two factors helped breaking the price spiral created artificially by vested interests, Asghar said, adding that rate of sugar was around Rs 84 per kilogramme on October 28, which reached Rs 106 within five to seven days. He suggested that the government should ensure immediate start of crushing season and supply of bulk sugar it had acquired from the TCP to local market to ensure stability in the sugar prices.
Meanwhile, sources in the Cane Commissioner Office told this scribe that arrangements for lifting of sugar from the TCP are under way. They said that loading had been started and first consignment of sugar would start its journey to Punjab either late in the evening (between Wednesday and Thursday) or on Thursday morning.
However, they said that rates of this sugar were yet to be decided by the federal government but hoped that they would be settled between Rs 66 to Rs 71 per kilogramme. Sources further said that district-wise allocation of this sugar had been completed by the provincial government and services of dealers would be acquired for transportation of the commodity to different districts.
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