Khalid, an Islamabad-based dealer, said that the mill owners were releasing limited stock in the market to exploit the demand and supply situation.
Delay in off-loading of the Trading Corporation of Pakistan's sugar stock has changed the situation in favour of profiteers, who have been exploiting utmost the market supply and demand situation. The prevailing sugar prices trend indicates that profiteers are apparently in no node to miss any chance of getting higher price of their stock. Speculations are their best tool to create panic in the open market to sell the commodity at their desired rates.
The sources said that the millers, middlemen and wholesale dealers all of them were on the profit making spree. They are enjoying full support of a strong lobby within the government to keep on fleecing the consumers, who have no other option but to buy the commodity at the increased rates.
Interestingly, the government is indifferent to unprecedented increase in sugar rates, as none of its departments is taking notice. Last month, the prices were ranging between Rs 21 and 22 against Rs 28 per kg in the first week of the current month.
The sources said the government's policy of wait and see was encouraging the profiteers and its continuation would add to consumers' problems.
The increase in sugar rates rightly during the crushing season is enough to gauge the gravity of the situation. The crushing season is at full swing these days and initial production reports are encouraging enough to believe that domestic output for 2004-05, would be enough to ensure smooth supply for the current year.
Market sources said that off-loading of TCP stock and permission to the private sector for import of duty-free refined sugar could improve the situation in the long run.
The TCP has 0.378 million tonnes in its stock and the government can ask it to off-load it any time to control upward trend in the commodity rates.