A leading sugar manufacturer, JDW Sugar Mills, has revealed that the prices of sugar will remain elevated owing to both a significant drop in its production and a considerable increase in the production cost during the ongoing year.
According to a report submitted to the Pakistan Stock Exchange on 2 February, JDW Sugar Mills, which is owned by the PTI stalwart Jahangir Khan Tareen, claimed that “the sugar prices in the market will naturally remain on the higher side”.
This indicates that the Pakistan Tehreek-e-Insaf (PTI) government may not succeed in reducing the prices of sugar any time soon.
The government, as usual, wants the sugar industry to sell sugar at prices far below the actual production cost.
The price had surged to Rs. 100 per kg in some parts of the country including the twin cities during the ongoing week.
A couple of months ago, the prices had shot up to over Rs. 110 per kg in the retail market as compared to around Rs. 80 per kg between March to May last year.
The government had attributed the price hike to the strong presence of the sugarcane contractor mafia.
JDW Sugar Mills explained that the government had directed the state-owned company and the private sector to import 800,000 tons of refined and raw sugar to control the prices, but this step is financially unfeasible as the global prices of sugar have also peaked.
“Import at this stage will cost over Rs. 110 per kg with all applicable taxes,” the company said.