The government move to supply 70,000 metric tones of sugar to Sindh with a view to scale down its price has failed to show positive results, as consumers are shunning to buy Trading Corporation of Pakistan's (TCP) imported commodity for being tasteless. Traders said on Tuesday that the TCP's imported sugar was not up to the consumers' standard and was not suitable for normal use, which was being retailed at Rs 71 per kg.
Whereas, the quality sugar is still being sold at 100 per kg in the wake of a cane crushing delay due to controversy over support price between sugar millers and growers, traders added.
"Supply is restricted, as wholesalers are selling the TCP imported sugar in a lower volume primarily to beverage and glucose making companies," said General Secretary, Karachi Retailers and Grocers Group, Fareed Qureshi. But, buying of imported sugar by retailers is unimpressive, as consumers are avoiding buying the commodity for being flavourless, he added.
He said TCP was selling the commodity in open market to anyone at Rs 65 per kg, while traders retail it at Rs 71. He acknowledged that the quality sugar was still being sold at Rs 100 per kg because of its shortage in the local market, allowing hoarders to capitalise on the weak market mechanism.
Sugar had recently hit historic high of Rs 110 per kg because of the government's weak policy to stabilise the rate of the essential commodity, besides row between growers and sugar millers over minimum sugarcane support price. "Supply of locally produced sugar has just begun and hopefully the market will attain stability in a week or so," said Chairman Karachi Wholesalers and Grocers Association, Anis Majeed. He said that sugar was available at Rs 80 per kg on the wholesale market, and "it is up to retailers that at what price they sell the commodity".