KARACHI, Oct 31: Sugar prices have gone up by Re1 to Rs2 per kg to Rs23-24 per kg from Rs21 per kg just a day before Shab-e-Barat falling on Thursday-Friday night.

Shab-e-Barat is an occasion when Muslims prepare halwa using sugar as the main ingredient. Rising demand for sugar has led to price increase.

Retailers attributed the price hike to holding back of stocks by the millers to fetch higher prices in view of rising demand.

The wholesale prices of sugar has come down to Rs19 per kg from Rs24 per kg in the last one month. Just two days ahead of Shab-e-Barat, sugar millers had stopped releasing the stocks which caused the price hike.

A sizeable demand of sugar has come from Punjab from where the commodity is being transported to Afghanistan, retailers said linking it as another reason in the current price spurt.

Retailers said that the prices may go up further owing to upcoming rising demand in Ramazan, which is just 20 days away.

They said that prices could come down further if the millers release some stocks.

According to Pakistan Sugar Mills Association (PSMA), sugar stocks at mills stood at 511,329 tons as on October 15, 2001.

Sugar lifting in the fortnight ending on October 15 was 105,860 tons. In the 2000-01 season, total sugar production from cane, raw and beet was 3,012,392 tons out of which 2,501,063 tons had been lifted.