KARACHI: Despite Rs5-7 per kg fall in wholesale sugar price, the city government appears helpless in taking retailers to task who are still overcharging consumers.

The price has fallen to Rs53-54 from Rs58-60 per kg in the last month and wholesalers anticipate more decline as millers are clearing their sugar stocks ahead of cane crushing season due to start from next month.

Owing to city government’s ineffective price checking campaign, the retailers in most of the areas are still demanding Rs63-65 per kg from consumers who are not aware of sharp decline in its wholesale prices.

Surprisingly, the Commissioner Karachi had issued reduced wholesale and retail rates for October 1-15 at Rs58 and Rs60 per kg as compared to Rs62 and Rs64 per kg for Sept 15-30, 2015.

The main beneficiaries of drop in sugar price are sweet makers, confectioners and bakers as they procure the sweetener at wholesale rates or directly from the mills, but they have not passed on single penny benefit to consumers.

According to figures of Pakistan Bureau of Statistics (PBS) the country’s sugar production plunged to 5.149 million tonnes in 2014-15 from 5.582m tonnes in 2013-14.

Sugar exports fetched $322m with shipment of 708,968 tonnes in 2014-15 from $287m by shipping 647,333 tonnes in 2013-14.

Exports plunged to 8.6 million (19,116 tonnes) during the first two months (July-Aug) of 2015-16 2015 as compared to $42 million (89,376 tonnes) in same period last year.

The government in July increased the regulatory duty on import of sugar from 20 to 40pc to please the millers. However, lower price in world market had encouraged some companies to expedite its imports.

Its imports increased to 3,495 tonnes ($1.5m) in July-Aug 2015-16 as compared to 1,225 tonnes ($768,000) in same period last year. In 2014-15, sugar imports stood at 10,201 tonnes ($6.23m) as compared to 9,824 tonnes ($6.15m) in 2013-14.

Published in Dawn, October 16th, 2015

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