Mounting pressure from industry stakeholders and calls for a crackdown on hoarding have brought a halt to the recent surge in sugar prices, with both retail and wholesale rates showing signs of decline.
According to Abdul Rauf Ibrahim, Chairman of the Wholesale Grocers Association, the retail price of sugar has dropped from Rs200 to Rs195/kg in recent days. Similarly, the wholesale price has fallen from Rs185 to a range of Rs178-180/kg.
Rauf attributed the price correction to growing scrutiny over speculative hoarding. He claimed that around 2.6 million tons of sugar are currently being held back from the market for profiteering and smuggling.
Rauf also cautioned against proposed sugar imports, saying that domestic production is sufficient to meet local demand. He warned that importing sugar at this stage would be economically detrimental, potentially costing the country more than $265 million in foreign exchange at a time of severe fiscal strain.
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