Sugar prices in Lahore have been rising steadily, despite the ongoing sugarcane crushing season, reported ARY News citing dealers.
The Dealers Association has raised concerns about the artificial shortage created by sugar exports, which is driving up prices.
Within a few days, the price of sugar has jumped by 18 rupees per kilogram, according to the Dealers Association. The current ex-mill price is between Rs 140 and Rs 143 per kilogram. This increase follows a rate of Rs 125 per kilogram in December.
Looking ahead, the Dealers Association has predicted that the trade price for February will reach Rs 145 per kilogram. In smaller retail outlets, sugar is being sold for Rs 150 per kilogram.
They have warned that, if the forces behind this manipulation are not addressed, sugar prices could rise to Rs 170 per kilogram during Ramadan.
In October of last year, the federal cabinet approved the export of an additional 500,000 metric tonnes of sugar, with conditions in place to maintain price stability and ensure sufficient domestic supply.
The approval was granted through a circular, which also set the retail price of sugar at Rs 145.15 per kilogram. If the prices exceed this limit, the government has indicated that exports would be halted immediately, according to one of the conditions.
Additionally, the federal government instructed provincial authorities to keep a close watch on sugar prices, while urging mill owners to ensure that the ex-mill price does not exceed Rs 140 per kilogram.
