ISLAMABAD, Feb 6: The retail sugar prices set a new record of Rs42 per kg on Monday following reports of future sugar contracts in the market in anticipation of more supply shortages and rising international prices.

Industry sources said the ex-mill prices of the commodity on Monday ranged between Rs3,600-3,650 per 100kg, which resulted in wholesale prices touching Rs4,000 per 100 kg and retail prices surging to Rs41.50 and above.

They said some investors were making advance payments for deliveries in July-August next year through ‘futures contracts’.

This is for the first time in Pakistan’s history that sugar prices have increased by more than 95 per cent within a financial year or crossed Rs40 per kg. The commodity was sold at Rs21 per kg at the start of current financial year.

In 1998-99, the sugar prices had touched Rs40 per kg in the retail market for a few weeks owing to similar supply shortages.

A small increase in sugar prices had led to culmination of Ayub era in 1969.

Prime Minister Shaukat Aziz, who approved last weekend about 20 per cent increase in controlled sugar rate to Rs27.50 per kg at the Utility Stores Corporation (USC), is expected to hold a mini-cabinet meeting on Tuesday to review the crisis situation that continuous to remain out of control.

This is likely to be attended by the Pakistan Sugar Mills Association (PSMA) representatives. Before this, Adviser to the PM on Finance Dr Salman Shah will hold a meeting with the PSMA representatives to seek their cooperation in containing the prices.

The sources said all this was happening despite the fact that about 700,000 tons of sugar was currently available.