December 15, 2006	Friday	Ziqa'ad 23, 1427

KARACHI, Dec 14: Consumers are yet to see the real benefit of falling sugar prices at the wholesale as retailers have been too lethargic in passing on the decline to consumers, but they are quick enough to increase rates whenever they smell increase at the wholesale level.

Sugar at the retail is still being sold between Rs32 and 34 per kg as wholesale prices are on the decline for the last one month since the crushing at the mills has gained momentum, coupled with the availability of imported stocks.

General Secretary of Karachi Retail Grocers Group (KRGG) Farid Qureishi, told Dawn that the sugar prices at the wholesale have plunged to Rs29 per kg, but at retail, it is available between Rs 32 and 33 per kg.

He said prices at retail would fall with a passage of time as some retailers might have procured sugar at higher rates.

However, it appears unjust in view of consumers’ interests as they always experience quick increases and slow decline in prices.

General Secretary of Karachi Wholesale Grocers Association (KWGA), Mohammad Shakeel said sugar was available at Rs29.30 per kg on Wednesday and it further declined to Rs29 per kg on Thursday.

At the retail level, it should be sold at Rs30 and 31 per kg, but it is up to the retailers how they pass on the benefit to consumers.

He said sugar from local mills had started arriving in big quantity, coupled with the availability of imported sugar in the market at the rate of Rs29 per kg. Besides, demand of sugar is slow these days.

On November 22, retail prices had fallen to Rs33 and 34 per kg from Rs35 to 36 per kg on Nov 1 due to declining trend in prices at the wholesale.

At that time wholesale prices were hovering at Rs31.20 and Rs31.30 per kg. In the middle of November, it was Rs33.50 per kg. Besides the Trading Corporation of Pakistan had also off-loaded 30,000 tons of sugar in the local market to stabilize prices.

Former chairman of Pakistan Sugar Mills Association (PSMA) Sindh Zone, Abdul Wajid, said out of 28 mills in Sindh, some 24 to 25 are engaged in sugar crushing and by December 16 all the mills would be crushing sugar.

He said Sindh is likely to produce 0.9-1.0 million tons of sugar.

However, he said the ex-mill rate of sugar is now being quoted at Rs 27.20 per kg (excluding sales tax).

He linked the price fall to the start of cane crushing by the Sindh millers.