Daily Times

KARACHI: A sudden surge in the prices of sugar has upset the export-oriented industries, as their input cost has increased significantly.

Pakistan Biscuit and Confectionery Manufacturers Association (PBCMA) has reacted sharply over the news that sugar prices have gone up to Rs 70 per kg from existing prices of Rs 63-65 per kg in the open market. “The retail price ranged between Rs 63-65 per kilogram during the month of Ramazan. Retailers blame wholesalers for pushing up the rates while wholesalers point the finger at sugar millers for the unjust raise in price of commodity,” the report revealed.

The wholesale price of sugar has risen to Rs 65-65.60 per kilogram from Rs 60-62 in Ramazan despite carryover stocks of over one million tonnes in the country.

In a letter to the finance minister regarding the high prices of sugar in the market, PBCMA Senior Vice Chairman Raees Ahmed has appealed for the withdrawal regulatory duty of 40 percent on sugar, which was the sole reason for high sugar prices. The protection given to the sugar mills by fiscal measures was unprecedented and hence should be withdrawn forthwith.

“The industries using sugar cannot sustain these skyrocketing prices and would have to shut their operations, rendering substantial layoffs and a big loss of precious foreign exchange. This jump in the sugar prices would have a major impact in increase of inflation on national levels. Hence, the finance minister was requested to please withdraw the regulatory duty and export subsidies so that cheaper prices in the world market of sugar be passed on the consumers,” Raees said in his SOS sent to the finance minister.