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Historic inflation in 3 years: Who is responsible for hike in sugar prices?

Salima Bhutto by Salima Bhutto
March 24, 2022
More than 70% dealers have quit their businesses due to the government's crackdown on sugar dealers (FIle)

More than 70% dealers have quit their businesses due to the government's crackdown on sugar dealers (FIle)

Inflation in the country has been disastrous since the formation of the PTI government in Pakistan. For the first time in the history of Pakistan, sugar has crossed the 150 mark. Efforts are being made by the government but the monster of inflation is not coming under control.

The failure of the government to stop the rise in sugar prices raises questions as to who is responsible for the rise in sugar prices in the country?

Continuous rise in sugar prices

According to the Bureau of Statistics, essential commodities have gone up by 133% in a year. From October 25, 2018, to October 21, 2021, ghee has gone up by 133% per kg while sugar has gone up by 84.4% per kg. 2%, tomatoes 63.2%, live poultry 59.3%, lentils 56%, 20 kg bag of flour 52% more expensive.

Onion 46.01%, beef 46.2%, eggs 46%, mutton 42%, lentils 41%, fresh milk 32%, onion 46.01% per kg, broken basmati rice 25%, lentils 22%, petrol 47%. Diesel has gone up by 8% and diesel by 26% per liter. In three years, the price of edible oil has gone up by 130% and the price has gone up from Rs160 to Rs369 per kg.

Price of sugar

Despite all the measures taken by the government, the price of sugar in the country has reached Rs 150 per kg, the ex-mill rate of sugar in the country has gone up to Rs 142 per kg, the price of ex-mills has gone up by Rs 12 in just one day. People are forced to buy sugar up to Rs 150.

The fixed price of sugar

By fixing the price of sugar at Rs 85 per kg this year, the government has not been able to ensure the sale of sugar at its own fixed price. Then it soared to 88 rupees and then 89 rupees but even at this price the sale of sugar could not be assured.

In January 2021, sugar became Rs 91.25, in February, it became Rs 93, March Rs 98, April Rs 97, May Rs 98, June Rs 98, July Rs 103, August Rs 105, September Rs 107.59 paise. According to the average price, the sugar became Rs103 rupees.

Who is responsible?

Prime Minister Imran Khan says that the price of sugar in the country suddenly reached above Rs 140. Upon inquiry, it was revealed that the three sugar mills that were running in Sindh were suddenly closed and a crisis suddenly arose. the prime minister, regarding the sugar crisis, said that when the sugarcane crushing season comes, the crushing process starts from Sindh first. The rulers of Sindh closed their sugar mills due to which the price of sugar increased there. The rest of the country started facing the hoarding prices, which led to a sugar crisis in the market.

Fear of escalating crisis

Regarding the sugar crisis in the country, media sources said that the country’s sugar reserves are rapidly depleting. In the next 15 days, the highest level in the history of sugar in the country is expected to reach Rs 160 per kg. Authoritative sources said that more than 70 per cent dealers and wholesalers have quit their businesses due to the government’s crackdown on sugar dealers, which has led to a growing sugar crisis in the country. Traders are reluctant to do business, which is expected to push up prices further as shortages continue.

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