September 4, 2003	Thursday	Rajab 6, 1424

KARACHI, Sept 3: The wholesale price of sugar has shot up to Rs18.60 per kg from Rs17.30-17.60 per kg on Wednesday as the millers suspended delivery of the commodity to raise price.

As a result of increase in wholesale prices, retailers in posh localities have increased the prices to Rs20 per kg from Rs19 per kg, while in middle-income and low-income group areas, prices are being quoted at Rs19 per kg from Rs18 per kg.

Karachi Retail Grocers Group (KRGG) general secretary Mohammad Farid Qureishi said the millers had made a syndicate to suspend the delivery of sugar in the markets so that prices could go up.

A wholesaler also blamed the millers for suspending the supplies to the markets. He said traders having enough stocks in the markets were charging extra Rs100 on 100 kg sugar bag, saying that supplies from the mills had stopped.

An official at the Pakistan Sugar Mills Association (PSMA) ruled out the possibility of suspending sugar supplies from the mills. “There is virtually no suspension of sugar supplies from the mills,” he said linking the price hike to the impact of price increase in Punjab two days back.

On Wednesday, Sindh sugar mills management met at the PSMA office to review the operational and financial position of the Sindh sugar industry for the year 2002-03 season, scheduled to end shortly. The meeting assessed the situation likely to shape for the next sugarcane crushing season from the prevailing trends and its extended impact, says a PSMA press release issued here on Wednesday.

In view of the heavy losses suffered during the latest three successive seasons, due to distortion in production cost and sales price, the general body meeting reached to a consensus that it was not possible for the industry to commence the next crushing season campaign in the overwhelming uncertainty as it was found absolutely impossible to absorb more losses.