Cane crushing delay lifts sugar prices to record high

LAHORE: The provincial governments’ failure to notify sugarcane support price has pushed sugar rates to record high as supply chain has

started witnessing shortages following crushing season's no-commencement, The News learnt on Tuesday.

Depressing market sentiments including punitive actions against sugar mills’ managements and low stocks shot ex-mill price to over Rs113/kg.

There has been a Rs7/kg surge in sugar price by mills in the last three days.

According to a dealer, sugar price is feared to be raised by Rs1 to Rs1.50/kg per day onward, jacking up rate of commodity to Rs140-150/kg in a few weeks if crushing season failed to be initiated.

Several sugar mills in Sindh have not been able to start operations as they are waiting the announcement of sugarcane price by the government.

Sindh used to announce sugarcane price every year after Punjab.

Last year, Punjab government announced sugarcane price in the second week of October enabling timely operationlisation of mills.

Thus last year, Punjab managed to ensure flow of sugar into market amid low stocks. This year, however, Punjab is yet to announce sugarcane price.

A senior official said provincial government would announce sugarcane price by October 28.

Much to the dismay of consumers, there is only two districts in Punjab province out of ten major markets where sugar is available at government notified price of Rs79.75/ kg, as per an official report.

A senior official of provincial Food Department dispelled the impression there was a short supply of sugar in the province.

Contrary to 'rumors' of just 10,000 tons stock with mills, he claimed that 120,000 tons sugar was warehoused at mills (including sold but un-lifted), 29,000 tons imported sugar was stored at district admin godown and 30,000 tons at Utility Stores Corporation storage facilities.

This makes a total of 1790,00 tons. Moreover, as many as 90,000 tons is in transit from Dubai to Pakistan.