Pakistan Sugar prices surge at Utility Stores as market rates climb
The price of sugar at Utility Stores has risen by Rs 5 per kg, reaching Rs 150 per kg. This marks a Rs 10 increase in 1.5 weeks, driven by rising open market rates. With Ramazan approaching, demand is set to double, fueling further volatility. Meanwhile, the government plans to shut down Utility Stores Corporation operations nationwide.
The price of sugar at Utility Stores Corporation (USC) outlets has increased by Rs 5 per kilogram, bringing the new price to Rs 150 per kg, up from Rs 145. This marks the second price hike in just one and a half weeks, with a cumulative increase of Rs 10 per kg.
The surge in sugar prices is attributed to rising rates in the open market, where sugar is being sold at Rs 160 per kg in Karachi’s retail market. Wholesale traders in Jodia Bazaar have warned of further increases, with advance deals for March already reaching Rs 152 per kg.
Ramazan price surge expected
With Ramazan approaching, sugar demand is expected to nearly double from 550,000 tons to 1 million tons, further fueling price volatility. Wholesale Grocers Association Chairman Rauf Ibrahim has pointed to hoarding as a major factor, warning that profiteers could drive prices even higher in the coming weeks.
Since December, sugar prices have surged by Rs 26 per kg, and last year, rates climbed to Rs 180 per kg at their peak. The government had withdrawn subsidies on essential commodities, including sugar, in August 2024, which has also contributed to the steady increase in prices.
Government plans Utility Stores shutdown
Amid the price hikes, the federal government has decided to shut down Utility Stores Corporation (USC) operations nationwide. A seven-member committee, led by the Minister for Industry and Production, has been formed to oversee the process. The committee includes key government officials from the Finance, Revenue, and IT Ministries, along with the Secretaries of Finance and Industry & Production.
The closure of USC, which was initially established to provide subsidized essential commodities, raises concerns over accessibility and affordability, especially for low-income households struggling with inflation.
With market speculation and Ramazan demand looming, sugar prices are expected to remain volatile in the coming weeks.
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Source : The Nation
