ECC told of rising trend in sugar prices

The Ministry of Finance has informed the Economic Co-ordination Committee (ECC) about the rising trend in sugar prices, which went up from Rs 71 to Rs 73. 41, it is learnt. Sources told Business Recorder that the price of sugar witnessed Rs 2 per kg increase during the last couple of weeks and surged from Rs 71 on July 14, 2011 to Rs 73.41 on August 8, 2011.
The meeting was also informed about the weekly price of sugar reflecting an increasing trend. An official said that a detailed presentation was given at the last ECC meeting about price situation as well as commodity stock position in the country. About wheat and wheat flour price, the meeting was informed that price of flour declined by Re1 per kg during the last one month.
The price of wheat flour decreased from Rs 29.76 per kg on July 17, 2011 to Rs 28.57 per kg on August 16, 2011 and wheat Rs 25.38 to Rs 25.30. The price of fresh milk escalated from Rs 55.76 per kg to Rs 56.05 per litre during the said period. The ECC was informed that food inflation was main factor behind rising inflation with 7.1 percent contribution to overall 13.8 percent Consumer Price Index (CPI) for the month of July 2011.
The non-perishable food items were main contributor in the food inflation with 6.2 percent impact whereas the impact of perishable food items was only 0.9 percent. An official said that the meeting was informed that contribution of non-food inflation in the CPI was 6.3 percent with highest impact of 2.1 percent of house rent and 1 percent laundry and personal appearance.
About the stock position of sugar, the ECC was informed that available sugar stock was 1.669 million tons in the country on August 16, 2011 with 1.413 million tons stock with provinces and 256,000 with the Trading Corporation of Pakistan. The stock position of wheat as on August 16, 2011 was 9.205 million tons with the public sector including 5.071 million tons with Punjab, 1.530 million tons with Sindh and 2.204 million tons with the Passco. Wheat stocks with Khyber Pakhtukhwa and Balochistan were 238,000 tons and 162000 tons, respectively.