Rising sugar prices: Confectionary, bakery & snacks manufacturing sector may face closure

LAHORE: Confectionary, bakery and snacks manufacturing sector expressing concern over Rs45 per kilograms increase in sugar prices during last two months has warned the government that the domestic food industry may face closure if the rising prices of sugar are not controlled.

“Rising prices have rendered the local confectionary and food industry to meet its export orders as well as cater the domestic market at reasonable prices,” said representatives of All Pakistan Confectionary and Snacks Manufacturing Association of Pakistan and Sweets and Bakers Association of Pakistan Haji Riaz ul Hassan, Chaudhry Muhammad Arshad, Sheikh Tahir Anjum and others.

In a joint statement issued here on Thursday, they said the government should ensure reversal of Rs45 per kg increase in sugar price registered during the last two months to ensure their sector working. Otherwise closure will lead to loss of jobs to thousands of people and revenue loss to the national exchequer at the same time.

They expresses their apprehension that mafia behind the rise in sugar price would take it to Rs180-190 per kilogram if the government failed to take timely steps to check it. They claimed that they had worked out their export orders at Rs90 per kg for sugar thus at present if they would have to fulfil their foreign orders in loss.

Confectionary, snacks and sweets manufacturers said they did not want to close down their units but the situation was leading to that end. They said there was no justification of increasing sugar prices now as the production period of sugar mills had come to an end some two months back. They said it was very easy to check who was behind this artificial price hike as the government had installed track and trace system at the mills.

Copyright Business Recorder, 2023