LAHORE, Jan 8: The price of sugar is set to increase further as millers have threatened to stop crushing at the current price. The government has called a meeting on Thursday to discuss the issue.The anticipated increase would be on top of Rs3 per kg increase in ex-mill rates made during the last two weeks.
On December 23, the ex-mill price of a 100kg bag stood at Rs2,700 which went up to Rs3,000 on Thursday last. And in retail, the price has already touched Rs31, which is Rs5 more than the Prime Minster's Eid package.
Millers insist that during a recent meeting, the official committee on sugarcane, headed by Federal Secretary (Minfal) Ismael Qureshi, had promised to increase the ex-mill rate of sugar to Rs31 per kg and retail to Rs34.
Mr Qureshi denied any such promise, saying that Rs34 was supposed to be the upper limit, and not the factual price.
However, when he was reminded of the presence of journalists at the meeting in which the committee had promised to increase the price, he said: “That understanding was only for the month of November."
Requesting anonymity, a spokesman for the sugar industry said the federal secretary was now backing out for the fear of popular reaction. He had promised to increase the price, and the Minfal had also hinted at such a move.
Should the increase be granted as promised – from Rs26, as announced by the prime minister in his Eid Package, to Rs34 – it will mean a whopping 30.76 per cent increase in one go.
Mr Qureshi told Dawn that the committee had convened a meeting to discuss ‘legitimate demands’ by the industry. He said people from all provinces had been invited to the meeting and the issue would be discussed thoroughly. Besides the price issue, payment to growers and other related issues would also come under discussion.
