KARACHI, Nov 22: The retail price of sugar has fallen to Rs33-34 from Rs35-36 per kg on November 1 after a declining trend at the wholesale stage during the last one week.

Sugar prices of local mills are now being quoted at Rs31.20-31.30 per kg in the wholesale market as compared to Rs33.50 a week back. It was available at Rs32.50 per kg two days back.

Mohamamd Shakil, general-secretary, Karachi Wholesalers Grocers Association (KWGA), attributed falling sugar prices to the arrival of fresh sugar from some three to four mills in the market. He anticipated further fall in the wholesale rate in case more mills offload their stocks in the market.

He said the beginning of crushing by Sindh millers had made an impact rather than the sentimental impact of the recent tender issued by the Trading Corporation of Pakistan of 30,000 tons of sugar for local sale from its stocks aimed at stabilising prices. He said some imported stock was also available at Rs31 per kg in the open market which was sufficient to cope with the requirement for over one week.

KWGA Chairman Anis Majeed said that the TCP had definitely made sentimental impact in the shape of price fall in open markets. Besides, many mills in Sindh had initiated sugarcane crushing and released their stocks in the markets. He was of the view that some 40,000 tons of imported sugar was also available in the market, while the TCP held 650,000 tons and millers had over 250,000 tons with them.

The falling prices had caused stir to sugar millers of Punjab, especially for those who feel that the government had taken a U-turn from its earlier commitment with the millers. The government promised that it would not allow the TCP to release sugar in the open markets before November 30, with an aim to ensure the industry is able to dispose of its stocks. But the TCP tender had changed the market scenario.

Abdul Wajid, former chairman of the Pakistan Sugar Mills Association, Sindh-Zone, attributed the price fall to the issuance of TCP tender coupled with the start of cane crushing by the Sindh millers. However, he criticised the government for allowing the TCP to release sugar stocks despite an understanding with the millers.