LAHORE – Pakistan Sugar Mills Association (Punjab Zone) ruled out increase in the sugar prices and rejected the news circulating in the media in this regard.
The PSMA said that price mechanism is dependent on market forces.
“Real beneficiaries of artificial price hike of sugar in retail market are Satta Mafia, hoarders and profiteers who after taking stock of the situation, spread rumours to influence the interplay of market forces to gain undue profits on sugar available with them,” said PSMA spokesperson in a statement on Wednesday.
It is pertinent to mention here that sugar mills are already providing sugar at a concessional rate of Rs. 130 in all Districts and Tehsils through Ramazan Package discount stalls during the holy month in collaboration with Federal/Provincial governments and District Administrations.
Moreover, sugarcane rates have also gone up to Rs.650 per mound in the current crushing season. Other factors of rising costs of production of sugar include increased taxation on sugar industry, expensive imported chemicals and wage increases.
It is an established fact that when expense on raw material increases, price of final product will ultimately rise for industry to survive and to recover the cost of production.
He further said that in the current crushing season rates of sugarcane have risen considerably due to effects of global warming and pest attacks on the sugarcane crop. At first, last year the summer temperatures went very high which damaged the sugarcane crop. Later, when farmers had to fertilise the cane crop heavy rains started in September and October which badly affected the crop. The sugar recovery and per acre yield of sugarcane drastically came down which has affected the farmers and sugar industry.
