The retail price of sugar has increased to Rs180 per kilogram from Rs170, following a steady rise in wholesale rates. Traders attribute the hike to wholesale prices climbing to Rs168 per kg from Rs153 per kg over the past two weeks.
Last month, the average national price of sugar ranged between Rs145 and Rs160 per kg, continuing its upward trajectory in the lead-up to Ramazan. At the beginning of January, sugar was selling for Rs130 to Rs150 per kg. Some retailers who stocked sugar at lower prices in bulk are now capitalizing on the rising market rates.
Karachi Wholesalers and Grocers Association representatives criticised the government’s handling of sugar prices, noting that authorities first permitted sugar exports when wholesale rates stood at Rs125-130 per kg.
Pakistan exported 757,597 tonnes of sugar in the first seven months of FY25, earning $407 million. This marks a sharp increase from the 33,101 tonnes exported in the same period last fiscal year, which generated $21 million. The average export price per tonne fell to $537 in FY25 from $636 the previous year.
A spokesperson for the Pakistan Sugar Mills Association (Punjab zone) declined to provide details on the rising ex-mill rate over the past 20 days, stating that pricing varies by mill. However, the association denied that sugar exports were responsible for the price hike.
The industry claims that nearly half of the exported sugar was sold below production costs, resulting in significant financial setbacks. The spokesperson stressed that surplus production, coupled with export restrictions, places an unsustainable burden on traders.
