Karachi January 29 2022: Sugar prices in the local market have generally followed the trends that have been observed in the international market. From a low in 2018, sugar prices have risen higher as inflation has struck across the globe and domestically. From historically low levels throughout 2018 and into the first quarter of 2020, sugar prices have rebounded in 2021 and are projected to remain stable this coming year.
Average sugar prices in the domestic market increased by PKR 17.61 per kg or 22.69 percent from PKR 76.6 per kg to PKR 94.2 per kg in a period of one year.
The reasons behind the sharp rise in prices has been the disruption of the global supply chain and shipping logistics. In fact, in the last few weeks due to rising oil prices and depletion of inventories in sugar exporting countries, sugar prices have risen further at the international level.
In the domestic market, sugar prices have regained pace and are likely to continue to increase through the greater part of 2022. There is no carryover of inventory from last year and sugar production is forecasted to be similar than that of last year. Given that sugar production is expected to stay similar to last year, we are confident that the trend observed in sugar prices will follow the resurgence witnessed in the international market before the next crushing season.
“We are confident, due to supply and demand dynamics of sugarcane, and the manufacturing cost of sugar, that the price of sugar in the domestic market will continue to rally throughout 2022.”Says Company Chief Executive Officer Mian Mustafa Ali Tariq
Husein Sugar Mill was able to crush 303,821 Tons of Sugarcane and produced 23,565 Tons of refined sugar at an average recovery of 8.24 percent during the first quarter ending December 31, 2021 as compared to last year’s sugarcane crushing of 319,530 M. Tons and production of 26,260 Tons refined sugar at an average recovery of 8.52 percent. Although we were able to crush slightly less cane in terms of tons of sugarcane crushed as compared to last year and in terms of sugar produced, we are confident that with a longer season, our total crushing and production figures will surpass last year.
Financially, company’s results have been similar to last year. Net sales were recorded at PKR 2,077,089,860 during the first quarter from 1st October 2021 to 31st December 2021 as compared to PKR 1,570,184,415 against the corresponding period of last year.
The company has earned a pretax profit of PKR 100,898,988 during the period under review as compared to pretax profit of PKR 336,786,116 in the corresponding period of last year and after-tax profit has been recorded at PKR 74,606,867 against after tax profit of PKR 313,233,350 over the same period of last year
Husein Sugar Mills Limited is a public limited company incorporated in Pakistan under the Companies Act, 1913 (Now the Companies Act, 2017). The Company is principally engaged in the business of production and sale of sugar and its byproducts.