Sugar prices across Pakistan remained elevated despite the government’s recent directives to bring rates below Rs164 per kilogram. In many cities, the retail price of sugar hovered between Rs164 and Rs180 per kg, showing little impact from official warnings or crackdowns on hoarding.
Karachi Wholesalers Grocers Association President Rauf Ibrahim said sugar prices at the wholesale level in Karachi had briefly declined from Rs168 to Rs158 per kg following Prime Minister Shehbaz Sharif’s March 15 announcement targeting hoarders.
However, he noted that retailers failed to pass on the Rs10 reduction to consumers, taking advantage of high Ramazan demand.
He criticised the government for failing to bring prices down to Rs130 per kg, saying that no effective action was taken against sugar mills while only retailers were being penalised.
Following interactions between sugar millers and government officials, he claimed, wholesale prices had again increased to Rs168 per kg. He urged authorities to audit sugar production costs.
Meanwhile, a spokesperson for the Pakistan Sugar Mills Association (Punjab Zone) rejected claims that exports were driving up sugar prices. In a statement, the spokesperson said the price increase had nothing to do with exports, explaining that the industry held a surplus of 1.2 million tonnes—worth Rs250 billion—as of September 2024. The stock had been pledged with banks at nearly 25 percent interest.
The spokesperson argued that delayed export approvals nearly pushed the industry to collapse, adding that exports were only allowed after multiple government verifications of surplus stock.
He said that in June 2024, it was agreed with the government that the ex-mill rate for sugar from the 2023–24 crushing season would remain fixed at Rs140 per kg during the export window.
The statement noted that sugarcane prices reached a record Rs750 per maund this season, benefiting growers and ensuring future crop sustainability. Linking rising sugar prices solely to exports was described as misleading.
The PSMA also blamed market forces, including speculation and hoarding by the so-called “satta mafia” and retailers, for the price hike. It stated that domestic consumers can currently purchase sugar at Rs130 per kg at 274 official stalls set up for this purpose until April 19.
The industry reiterated its longstanding call for independent cost audits to verify production costs. It also proposed a two-tier pricing system, separating the commercial sector—which consumes 80 percent of total sugar and is unregulated—from domestic consumers. The industry expressed readiness to collaborate with the government to ensure affordable prices for household users.
