ISLAMABAD: The government needs to make arrangements for importing 0.5 million tons to one million ton of sugar as at present in the global market the commodity is being traded on record low prices, otherwise, in the next season sugar millers will again create sugar shortage.
This was stated by Ibhrahim Mughal, chairman AgriFourm Pakistan, while talking to Business Recorder, adding the sugar millers were giving a wrong impression of a bumper sugarcane crop for the season but in reality this year sugarcane production will be below the target.
He said that as a result of below the target sugarcane produce, local sugar production will remain between 3.5 million tons to four million tons which is one million ton lower than the country's demand of five million tons.
He said that owing to the situation, the Trading Corporation of Pakistan (TCP) must take full advantage of the present global commodity prices, and timely import up to one million ton of sugar.
Mughal said the step would greatly help save masses from Rs50 billion profiteering eyed by the sugar millers, adding that the season millers had additionally earned over Rs35 billion though profiteering.
He said that as per government announced minimum price of the sugarcane for farmers of Rs200 per 40kg, the commodity prices including all the costs from the farm to factory to management and reasonable profit, the retail price should not be more than Rs50 per kg, saying when sugarcane was being sold at Rs100 per 40kg then the sugar was available at Rs25 per kg.
While dispelling the notion being spread by millers that cane farmers are not willing to sell their commodity to millers and are selling on high prices to other users. He said farmers in open market in some parts of the country were getting Rs240 per 40kg price for their produce especially in Khyber-Pakhtunkhwa by gur manufacturers but to get additional price, farmers have to bear additional transportation costs and finally they manage to get around Rs20-25 additional, while sugar millers are not making timely payments to them.
Mughal said if sugarcane is being supplied to millers at Rs250 per 40kg, still sugar price including all the taxes should not exceed Rs65 per kg but they are getting over Rs75 per kg, saying anything over Rs65 is profiteering.
An analysis of the past two and a half years of sugar prices shows that sugarcane prices remained constant during the period but sugar prices have witnessed an increase of 44.23 percent.
On May 2018 sugar price was stable at Rs2,620 per 50kg bag in wholesale market which in retail is being sold at Rs58 per kg, and on December 25, 2018 sugar prices started witnessing an increase as it reached Rs2,750 per 50kg bag in wholesale market, which in retail is being sold at Rs62 per kg.
While on May 25, 2019 sugar price jumped to Rs3,300 per 50kg bag which in retail was being sold at Rs70 per kg.
On December 14, 2019 it was available at Rs3,400 per 50kg bag which in retail is being sold at Rs72 per kg, while at present in wholesale market sugar is being traded at Rs3,750 per 50kg bag, which in retail is being sold at Rs80 per kg. The decline in the prices has come after the government imported sugar as before the imported sugar arrival wholesale sugar price has touched Rs5,350 per 50kg bag.
Copyright Business Recorder, 2020
Comments
Comments are closed.