LAHORE/KARACHI - Following the government’s approval to export 500,000 tons of sugar last month, the price of the commodity in Lahore’s markets has increased by Rs 8/kg in a month.
The approval in the second week of December last year continued to affect prices of the commodity in the month of January. However, the consumers have rejected the raise, saying increasing rates after arrival of new crop of sugarcane is unjustified.
An estimated 500,000 metric tons of sugar will be exported in a phased manner till March 31, 2016.
Meanwhile, sugar has seen Rs 5 per kg hike in the last two weeks in the Sindh metropolis, Karachi.
In the last week, sugar price increased by Rs 2 in wholesale while by the same in retail markets, taking the total price to Rs 56 per kilogram (Kg).
According to the wholesalers, sugar supply is much lesser than its demand leading to hiked price .
In December 2015, fresh stocks in the market had resulted in sugar price cut by Rs 2.
Crushing of sugarcane was started in Sindh without any price set by the government for the farmers.
Sugar dealers had said that they were purchasing sugarcane yields from farmers on basis of deferred payments.
In retail, sugar was sold for Rs 53 per kilogram in December 2015. In Punjab, the government has set sugarcance price at Rs 180 per 40 kilograms.