Demand, supply factors behind sugar price hike: PSMA

LAHORE:The Pakistan Sugar Mills Association (PSMA), Punjab Zone, spokesperson Wednesday said the sugary industry is not increasing the sugar prices.

In a statement, the spokesperson said the demand and supply factors are behind the rise in prices of the commodity. He said ex-mill price of sugar has not increased abnormally as it keeps fluctuating on the basis of demand and supply. He said the price mechanism is dependent on market forces.

He said real beneficiaries of artificial price hike of sugar in retail market are Satta Mafia, hoarders and profiteers who after taking stock of the situation, spread rumours to influence the interplay of market forces to gain undue profits on sugar available with them.

Reportedly, sugar mills are already providing sugar at a concessional rate in all districts and tehsils through Ramazan Package discount stalls during the holy month in collaboration with Federal/Provincial governments and District Administrations.

Moreover, sugarcane rates have also gone up to Rs 650 per maund in the current crushing season. Other factors of rising costs of production of sugar include increased taxation on sugar industry, expensive imported chemicals and wage increases, he maintained.

He said it is an established fact that when expense on raw material increases, price of final product will ultimately rise for industry to survive and to recover the cost of production. He maintained that in the current crushing season rates of sugarcane have risen considerably due to effects of global warming and pest attacks on the sugarcane crop.

At first, last year the summer temperatures went very high which damaged the sugarcane crop. Later, when farmers had to fertilise the cane crop heavy rains started in September and October which badly affected the crop. The sugar recovery and per acre yield of sugarcane drastically came down which has affected the farmers and sugar industry.