Price rises by Rs30 in less than a month

Dealer says main reason for sugar shortage TCP’s decision to not release its stocks.

PESHAWAR: Sugar prices have gone up by around Rs30 in the market in less than a month over the past two weeks in the provincial capital, traders said.

The price of a 50 kilogramme bag of sugar, which was Rs 3,900 in the wholesale market towards the end of the October, has now risen to Rs 5,250- an increase of Rs 1,350 per bag.

Retail prices of the commodity which was previously available for Rs 80, has now reached to Rs 110.

However, dealers predict that prices will come down as no one is willing to buy commodities at these high prices.

Mamoonur Rashid, a dealer in Rampura Bazaar, told The Express Tribune that a 50 kilogramme bag of sugar was being sold for Rs 5,250, at the rate of Rs 105 per kilogramme. Contradictory to that, a retailer told The Express Tribune that they were buying sugar at the rate of Rs 106 per kilogramme and selling it at Rs 110.

However, Rashid said that the during the coming week, prices are destined to come down, as the Trading Corporation of Pakistan (TCP) has decided to release its stocks to the market and there was less consumption in the market due to the sudden increase in the prices of the commodity.

He said that the main reason for the shortage of this commodity was the TCP’s decision of not releasing its stocks, besides the sugar mills had not yet begun the crushing of sugarcane.

“Sugar mills have no stocks left and crushing season is yet to start, prices have shot up in the local market, however, this price hike is likely to continue for a bit longer, as the approaching Eid holidays will further delay the start of the crushing season.”

However, the projection of prices for the month of December shows that prices will come down to Rs 90, after new produce arrives in the market.

Published in The Express Tribune, November 10^th, 2010.