TCP asked to offload 50,000 tons sugar in market

Unexpected surge in sugar prices has invited sharp reaction from the federal government, which has directed the Trading Corporation of Pakistan (TCP) to immediately offload 50,000 tonnes sugar in the market to pull down commodity prices at the last week's level, it was learnt here on Thursday.
Sources said the federal government issued directives to the TCP through a shortcut offload procedure for its second instalment of 50,000 tonnes sugar so that trend of sudden increase in its prices could be seized effectively.
The sugar prices shot upwards from the last week's Rs 20 per kilogramme to Rs 24 per kilogramme. This out of the blue price hike is obviously a shock to the government, which had a commitment from the Pakistan Sugar Mills Association (PSMA) that retail commodity rates would not exceed Rs 20.
The sources said the government might seek explanation from the PSMA for breach of its commitment to keep the prices at a reasonable level of Rs 20 per kilogramme.
They said the survey reports which clearly indicated that sugar rates have gone up by Rs 4 per kilogramme in the market during the last two days due to sharp increase in its ex-factory rates had shocked the government authorities in Islamabad.
An official privy to the decision to release second instalment of 50,000 tonnes of TCP stock of sugar told Business Recorder that the reports of increase in sugar rates have been taken very seriously by the federal government, which decided to release second instalment from the TCP stock.
The sources said that the TCP's immediate intervention in the sugar market was in line with the government strategy to keep commodity prices at some reasonable level.
The increase in sugar rates has come at a time when the holy month of Ramazan is in progress and the people at large were already being fleeced.
When contacted, an official of the TCP confirmed that it was going to offload second instalment of 50,000 tonnes in the market to seize upward trend in the commodity rates. He said as per the official directive from Islamabad the TCP would cut short its commodity release procedure and offload its stock within a couple of days.