RAWALPINDI, Oct 14: A sugar crisis is developing in the city for the citizens who are still battling with the wheat flour crisis.

Taking advantage of the local administration’s concentration on easing the flour situation and launching Sasta tandoor scheme, the dealers in sugar had started hoarding the commodity which raised the retail price of sugar to Rs40 per kg.

They found an excuse for increasing the price in the announcement of the Punjab government raising the price of sugarcane by Rs80 per 40kg recently.

It is feared that the retail price of sugar in the market will further increase in days to come. As a result, prices of sugar-based food products will also rise.

The President of Rawalpindi Chamber of Commerce and Industry (RCCI) Abdul Rauf Chaudhry called upon the government to take measures to meet the shortfall in the production of sugar, and import one million tons of sugar to bring stability in the market.

In a statement, he called upon the sugar mill owners to bring the reserves in the market for the relief of consumers.

According to Pakistan Sugar Mills Association, the total per capita refined sugar consumption in Pakistan has been estimated at 25kg based on improved domestic supply and strong demand. On the other hand, refined sugar production in 2008-09 is estimated to be 3.67 MMT, primarily due to an expected drop in both area and production of sugarcane. As the country’s requirement is 4.2 MMT, domestic production is to be supplemented through imports.

Meanwhile, the production of sugarcane for 2008-09 has been forecast at 55 MMT, a decline of 10 per cent over the previous year mainly due to an expected decline in area and yield.

The federal government has fixed minimum purchasing price of sugarcane for Punjab and Sindh for the forthcoming crushing season which is due to start from November 1. According to a notification of the ministry of food and agriculture, the federal government has announced that minimum purchasing price of sugarcane would be Rs80 per 40kg in Punjab and Rs81 per 40kg in Sindh from November 1, the start of the crushing season.

A report on sugar situation in Pakistan says the ministry of food was holding consultation with the Pakistan Sugar Mills Association in an effort to increase sugarcane productivity and the capacity of sugar mills which were currently operating at 50 per cent.

The government is also considering amending the Sugar Factory Control Act of 1950 to create a more conducive environment for stakeholders.

A technical committee has been appointed to develop a methodology of linking sugarcane prices with sugar recovery percentage to improve the production dynamics and profitability of both farmers and millers.