Ishaq Dar reveals reason behind ‘rising sugar prices’

ISLAMABAD: Former finance minister Ishaq Dar believes that the increase in sugar prices is thus not a reflection of stock position but “exploitative policies of unscrupulous businesses and poor governance”, ARY News reported on Monday.

Taking to X (formerly Twitter), the former finance minister asked “not to raise false alarm over existing sugar stocks of 2.3 million metric tons.”

“With the next crushing season only 2.5 months away i.e. by November 16 2023, there is no need for raising false alarm over existing sugar stocks of 2.3 million metric tons,” Ishaq Dar wrote on X.

With the next crushing season only 2.5 months away ie by 16November 2023, there is no need for raising false alarm over existing sugar stocks of 2.3 million metric tons. Monthly consumption of sugar is just over half million mt and opening stock at the start of new crushing… https://t.co/TtJ5xYdmvv

— Ishaq Dar (@MIshaqDar50) August 30, 2023

According to the PML-N leader, the country’s monthly consumption of sugar is just over “half million metric and opening stock at the start of new crushing season in mid-Nov23 will be around one million metric tons”.

He pointed out that the increase in sugar’s retail prices is thus not a reflection of stock position “but exploitative policies of unscrupulous businesses and poor governance”.

Ishaq Dar claimed that the Pakistan Democratic Movement-led (PDM) government had allowed export of quarter million metric after due verification by the relevant authorities and institutions of the “then opening stock, crushing results, national consumption and maintenance of strategic reserve of sugar”.

Dar also said that the decision was made to earn precious $125 million for the national foreign exchange reserves.

It is pertinent to mention here that the wholesale price of sugar has hit a record high and reached Rs163 per kilogram in Pakistan.

Wholesale Grocers Association in its statement said that the per kilogram price of sugar has gone up by Rs6 with a 1-kilogram pack being sold out in the wholesale market at Rs 163.

In retail, the price of the commodity varies between Rs170 to Rs180 per kilogram.

Chairman of the Wholesale Grocers Association Rauf Ibrahim said sugar is not available to wholesalers even at high prices. If the surge continues the sugar prices can go beyond Rs 200 per kg.

ECC bans sugar export

Meanwhile, the Economic Coordination Committee (ECC) of the federal cabinet decided to impose a ban on sugar exports.

The committee decided to ban sugar exports. Prior to this decision, the ECC approved the summary to export 32,000 metric tonnes of sugar in June.

Sources told ARY News that the decision was taken in view of rising prices of sugar in the country.

100,000 MT of sugar to be imported

Earlier in the day, it was reported that the Trading Corporation of Pakistan (TCP) had decided to import 100,000 metric tons of sugar, priced at Rs 220 per kilogram.

Sources within the Food Department disclosed that the department currently holds a surplus stock of 1 million tonnes of sugar while importing additional sugar pricing at Rs 220 per kg.

Sources stated that the Food Department will have to utilize its reserves of sugar which depletes the surplus stocks to introduce the imported sugar into the market which impacts the consumer prices.

Sources claimed that the citizens will have to pay an additional Rs 120 to purchase the government subsidized sugar of Rs 100 per kg at Rs 220 per kilogram.