The prices of sugar in retail market are continuously on the increase although there is no effect on the ex-factory price which is prevailing around Rs 19 per kg.
At present, the retail price ranges between Rs 22 and 23 per kg. During last one month, it has gone up from Rs 20 per kg to the present level.
Market sources say that price hike cannot be controlled as sale price is checked at the wholesale depots who are lifting the commodity from sugar mills.
The Trading Corporation of Pakistan (TCP) has 0.3 million tons sugar lying with it. It wanted to release the stock in the market to stabilise the prices but the mill owners made an appeal to the Government that TCP should not be allowed to unload its stock in the market.
The mill owners have sufficient stock up to start of new seasonal operations in November. This means that TCP may not be able to sell its stock in the near future.
Consumers are suffering in spite of the fact that there is enough stock of sugar available in the country.
Mill owners are of the view that they were earning reasonable profit but they had no control on the retail market. It is for the government to check it.
The sugarcane crop for the next season is in short. The production thus will be affected adversely. At that time, the carry over of the TCP stock will provide a relief to the consumers.