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Sugar prices hit all-time high amid
supply crisis
TSugar remained in the limelight on the Karachi wholesale
commodity markets during the previous week. The prices
soared to new peak levels amid panic consumer buying due to
the pressure on supplies.
 According
to dealers, the prices at retail level are being quoted
between Rs40 to 45 per kilo as leading commercial houses and
mills are holding back their stocks. This in turn is
constantly fuelling the current flare-up.
The prevalent selling rates at the consumer level have
reached to a height never seen before. The continuous
escalation has left behind all previous records of rate
rises in previous decades. The incessant hike is yet to see
an end.
The supplies may be short of daily demand but the chief
destabilizing factor behind the run-up is said to be
ineffective price monitoring measures at the government
level, they added.
In accordance to general price escalating trend, the Utility
Stores Corporation of Pakistan too, has raised its selling
prices by Rs4 from Rs23 to Rs27 per kilo. However, the rush
of consumers to these stores and the consequent long queues
may have left a many without procuring their required amount
of the commodity, brokers said.
The official announcement to import 50,000 tons of sugar
from India for easing the price pressure from its peak
height could not play its due role on the accelerating value
movements, they said.
According to market sources, local mills are facing the
problem of higher cane prices and are finding it difficult
to pull down the rates after releasing a larger portion of
the new crop in the open market.
The local production may be short or to say below the three
million tons figure but steady arrivals from the mills
should avert the prevailing crisis of a terrible shortage.
On the other hand prices of some other essential items,
notably wheat and some varieties of rice remained under
pressure and suffered fresh but fractional fall. Wheat came
under pressure on the reports of oversupply and rice because
of the export problems and a bumper crop.
In spite of this, wheat recouped the initial loss of Rs5 on
reports of steady arrivals from the upcountry markets along
with a modest decline in mills’ demand, other essentials
were traded modestly.
Rice exports were maintained on the higher side and prices
of fine types were held unchanged on steady support from the
private sector exporters. IRRI types, both whole and broken
were exception and fell further by Rs5, partly to selling by
the commercial houses, and partly to larger new crop
arrivals from the Sindh markets.
Among other essentials, pulses were mostly traded at
previous levels barring peas which were quoted higher by
Rs40. Gram, masoor, urad and tuver types remained unchanged
at previous levels.
Major industrial raw materials, guar seeds came in for fresh
mill buying and rose by Rs125 to 175 per bag followed by the
pressure on supplies caused by another short crop in Sindh.
Processors were worried over the persistent price flare-up
as it made exports of the by-products uncompetitive in the
world market.
Cereals on the other hand lacked normal trading interest and
were firmly held at the last levels under the lead of maize,
jowar, barley and bajra. Stray business was reported at the
unchanged rates.
Oilseeds were also traded modestly under the lead of
cottonseed, rapeseed, and castorseed in the absence of
strong mill buying. Til followed them amid reports of larger
arrivals from the Sindh market and falling export demand.
Oilcakes, on the other hand showed stray price movements
amid alternate bouts of buying and selling. While cottonseed
cakes rose by Rs5 to 10, rapeseed cakes were traded at
previous levels.—M.A.
Courtesy: The DAWN
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