Sugar prices in the local wholesale market witnessed an increase of Rs 120 per 100 kilogram bag on Saturday as it reached to Rs 4,400 from Rs 4,280 per 100kg bag. Traders in the Akbari Mandi told Business Recorder that the prices had increased due to difference in supply and demand. One sugar dealer Hamid Akmal said due to short supply from the local sugar mills, there is a chance that the sugar prices may further rise.
He suggested that the government should import sugar to keep the prices stable in the domestic market. Pakistan Sugar Mills Association (PSMA) Punjab Zone Chairman, Javed Kiani the price increase to profit taking by the sugar dealers and impact of sugar price increase in the international market was the reason behind the rise.
He claimed that the cost of imported sugar at Karachi port comes to Rs 49.50 per kilogram and if freight is added it would cost around Rs 51-52 per kilograms in Lahore and other up country cities.
However, he said the sugar mills have sufficient stocks to meet the domestic needs. He said though the support price of sugarcane in the season was fixed at Rs 80 per maund but due to shortage of production, mills had purchased sugarcane at Rs 140-150 per maund. He said the average price of sugarcane for mills was Rs 120 per maund, so this also added to the high sugar cost this year.