Sugar prices up again
The price of sugar has hit Rs72 per kilogramme in the retail markets of Karachi and Lahore.
KARACHI:
The price of sugar has hit Rs72 per kilogramme in the retail markets of Karachi and Lahore, according to market sources. The price of the sweetener has also gone up in wholesale markets.
“Rains have affected the supply of sugar to wholesale markets and that has created more of an imbalance than we usually see in the days leading to Ramazan,” explained Chairman Karachi Retail Grocers Association Fareed Qureshi.
Qureshi also speculated that the increase in sugar prices would also drive up prices of associated food and beverage products during Ramazan. He revealed that demand is strong despite the hike in prices.
Meanwhile, the latest increase has taken the wholesale price of sugar up by Rs1.50 per kilogramme over the past one week. “The wholesale rate of sugar increased during trade on Monday to reach Rs68.5 per kilogramme,” said Anis Majeed, Chairman of the Karachi Wholesale Grocers Association.
According to wholesalers, demand has surged in days leading up to the holy month of Ramazan.
“The release of sugar stocks held by the Trading Corporation of Pakistan (TCP) into retail markets will help feed some of the increased demand,” added Majeed. However, he also pointed out that significant stocks have not been released by the TCP till present.
The government had instructed the corporation to supply 100,000 tons of sugar to open markets of all four provinces during the holy month. This included 50,000 tons for Punjab, 20,000 tons for Sindh and the rest to other provinces.
Wholesalers opined that speculative buying was being witnessed as investors were entering the sugar market with a view to making quick gains in Ramazan.
They explained that the cancellation of some import tenders by the TCP has fuelled speculative activity in retail markets.
On the other hand, sugar millers contend that they are maintaining supplies in line with their stock levels and that recent price increases have been caused by rising demand and speculative buying, not supply mismanagement.
Published in The Express Tribune, August 10th, 2010.
The price of sugar has hit Rs72 per kilogramme in the retail markets of Karachi and Lahore, according to market sources. The price of the sweetener has also gone up in wholesale markets.
“Rains have affected the supply of sugar to wholesale markets and that has created more of an imbalance than we usually see in the days leading to Ramazan,” explained Chairman Karachi Retail Grocers Association Fareed Qureshi.
Qureshi also speculated that the increase in sugar prices would also drive up prices of associated food and beverage products during Ramazan. He revealed that demand is strong despite the hike in prices.
Meanwhile, the latest increase has taken the wholesale price of sugar up by Rs1.50 per kilogramme over the past one week. “The wholesale rate of sugar increased during trade on Monday to reach Rs68.5 per kilogramme,” said Anis Majeed, Chairman of the Karachi Wholesale Grocers Association.
According to wholesalers, demand has surged in days leading up to the holy month of Ramazan.
“The release of sugar stocks held by the Trading Corporation of Pakistan (TCP) into retail markets will help feed some of the increased demand,” added Majeed. However, he also pointed out that significant stocks have not been released by the TCP till present.
The government had instructed the corporation to supply 100,000 tons of sugar to open markets of all four provinces during the holy month. This included 50,000 tons for Punjab, 20,000 tons for Sindh and the rest to other provinces.
Wholesalers opined that speculative buying was being witnessed as investors were entering the sugar market with a view to making quick gains in Ramazan.
They explained that the cancellation of some import tenders by the TCP has fuelled speculative activity in retail markets.
On the other hand, sugar millers contend that they are maintaining supplies in line with their stock levels and that recent price increases have been caused by rising demand and speculative buying, not supply mismanagement.
Published in The Express Tribune, August 10th, 2010.