KARACHI, March 30: The unsold stocks of white sugar lying in the mill godowns swelled to 1.7 million tons as lifting by the bulk consumers as well official sources was claimed to be on the lower side of the monthly average.

Dealers attributed the recent increase in prices to 10 per cent hike in import duty to 30 per cent from 20 per cent, which has made imports by the commercial importers uncompetitive, but has given a free-hand to the millers to set the trend for prices to follow on the wholesale and retail markets.

But there is no reflection of sympathetic price decline on the wholesale market, which were quoted higher by Rs100 per bag of 100 kg on Friday.

“The higher unsold stocks indicate the enormous holding capacity of the millers on the one hand and a firm hold on the selling prices on the other,” the market sources said.

According to latest production figures released by the Pakistan Sugar Mills Association (PSMA), the total production figure of all the mills in its fold rose to 2.610 million tons from the last year’s 2.523 million tons for same period ending March 15, last year, showing an increase of about 87,000 tons.

The total also included the imported stuff, including raw sugar refined, which was refined by the local crushers and is being marketed with the new crop local stuff.

According to unofficial crop estimate, the total production figure could rise to slightly above the 3 million ton mark, but the wholesale prices may remain on the higher side as the current trading pattern shows.

Meanwhile, reports coming from all the reporting mills indicate that leading among them could extend the current crushing season up to April 15, many others facing the shortage of sugarcane in their respective zones and higher prices may shut down during first week of the next month.