Sugar, edible oil prices increased

ISLAMABAD: With 24.43 per cent inflation, people have started feeling more heat as prices of essential commodities such as sugar and edible oil have surged by Rs5 and Rs2 per kg respectively within five days in the wholesale market.

Market players are playing havoc without any significant reason despite a sharp fall in prices of sugar and edible oil in the international market. Before Muharram 9th and 10th, the wholesale price of edible oil was around Rs650 per 5kg and sugar Rs36 per kg but now their prices have increased.

“The decision taken under the influential lobby of feudal lords in the Economic Coordination Committee (ECC) meeting on December 30 which did not allow imports of raw sugar to cater to domestic needs is a major reason for the hike in sugar price,” Amir Waheed Sheikh, who does wholesale sugar business, told The News.

He said this time the country would have 30 to 35 per cent shortfall in sugarcane production and sugar mills’ association and other market forces have asked the government to immediately allow duty-free imports of raw sugar or refined sugar. Otherwise, the price of the commodity at wholesale level would surge to over Rs40, meaning it would be available somewhere between Rs43 and Rs45 per kg in the retail market.

The inflation across the whole world has gone down by 6 per cent because of the reduction in commodities and POL prices, but in Pakistan the masses are still deprived of benefits just because of the poor governance. Despite the price surge, the Trading Corporation of Pakistan, which currently has 400,000 to 450,000 tonnes of sugar in its stocks, has remained unmoved.

It should intervene in the market and release at least 25,000 to 50,000 tonnes to help stabilise prices. In the ECC meeting, the powerful agriculture lobby prevailed. Shaukat Tarin foiled the bid to import 400,000 tonnes of raw sugar without any duty.

The Ministry of Industries, headed by Minister of Industries Mian Manzoor Ahmad Wattoo in a summary sought the import of 400,000 tonnes of raw sugar in the first phase after smelling the massive sugar deficit of 700,000 to 800,000 tonnes, but the powerful farmers’ lobby prevailed in the meeting and opposed the move saying in case the government takes the decision to import raw sugar, then sugarcane prices would fall alarmingly, inflicting huge monetary loss to sugarcane growers.

According to sources, who attended the meeting, Deputy Chairman Planning Commission Sardar Aseff Ali billed the sugar industry as ‘East India Company’ and opposed the move to import raw sugar, saying the East India Company does not want farmers to get good prices of sugarcane. All the cabinet members having rural background also opposed the move. Even Wattoo who was pleading the case of importing raw sugar had taken the U-turn. The ministry had come with the view in the meeting that since sugarcane production is not up to the mark to cater to domestic needs so the govt is left with no option but to allow the import of raw sugar.

Keeping in view the shortfall of sugarcane production worldwide, India has also placed the ban on export of raw sugar.

However, if the government acts on time then it can manage to import raw sugar from Brazil. However, the meeting asked the ministry of industries to come up in next meeting with 2 to 4 alternative measures to cope with the impending sugar crisis.