Financial experts are calling sugar "the white gold" these days. The prices are already sky high in international markets and are expected to go even higher.
Thinking of that, it makes sense from a business point of view by Sugar mills to raise the price because they could make lots of money by simply exporting the sugar rather than selling it to the government at lower prices.
Post#4 in this thread by bsobaid raises another important question. Please comment on that as well.
misalligned
Member
please inform bangladesh that dubai is the best place to import. ;)
LOL...but are they now importing Sugar from Dubai anymore? because after negotiating the price, the shortage of sugar is supposed to be over...
but on a serious note, we should try to reduce sugar consumption so we can earn revenue by exporting but you cant just reduce the consumption just like that. So it wont work. Our best bet was to have a bumper crop of sugar cane this season..that way we would have earned revenue..but bumper crop in Pakistan would have stabalised the prices in the international market...probably not because commodity prices are run high by these future traders who ran wheat prices high last season and oil prices high for past 3-4 years.
So yes, to me it makes sense for sugar producers to black mail government because international sugar prices are going up and government was asking sugar producer to sell it at a much lower prices to the government. For sugar producers it was a loss so they blackmailed government by creating an artificial shortage of sugar. After government agreed to their demands they brough sugar back into the market. So I think this is the real issue.
This however raises an important question. Should sugar producers have taken loss by selling government at lower prices than international prices? or government s hould have bought sugar at a higher price from sugar producers but given subsidy on sugar for general consumers but then government does'nt have money to give subsidies.
What do you think government/sugar producers should have done in this situation???
quaidkamazaar
Member
Bangladesh is doing better than Pakistan mashallah,
thats all I know :)
Bangladesh should consult Mr.10%...
maybe he can broke a deal with less commission ...
as Bangalis use to be our brothers ,at a time.
Cheeni Khappy.:)
latentry
Member
Everyone knows about the import of sugar drama from dubai and how Mr 100% was making money on it.
bsobaid
I dont understand why you support these corrupt politicians from PPP. They all are ****. PPP or muslim league they all are same sucking the blood of poor of people of Pakistan.
What i see you Obaid just talk the language of these Corrupt politicians like BB SHAHEED, BILAWAL the great hope, Zardari the real man bla bla bla. To me they all should go in hell. MAY GOD PUT THEM IN HELL AS SOON AS POSSIBLE. AMEEN
You are all missing the point here. When did I mention Zardari or PPP in this whole post even once? I presented the situation and I was hoping to get responses from pkpoli contributors.
All I am trying to do here is to analyse the situation becase it is not as simple as "sab chor hein" or "sab loot kay khaa gaey". There is more beyond these stereotypes and we all need to learn that.
( I said Zardari is the man and Bilawal is the hope?? when did I say that ?? )
amin1924
member
bsobaid,
I see your point, but why did you tie sugar price with international price, which then leads one to think of loss of profit.
It is produced locally and consumed locally. They are already making almost 100% profit. When it comes to profit they look up to international market, but this is never true other way around.
Thats right JJ, but this is how business people think. They are always running after money but probably this is not just Pakistani business I think all bussiness men do that. I wonder how other countries deal with situations like these. Other governments probably subsidise prices of basic consumer goods but obviously we cant do that because we barely have any money. It will be interesting to see how other governments deal with it. Whether they buy such commodities at international price and subsidise the price for the consumers or the business people in those countries sell them at a lower rate for domestic market.
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