Sugar prices surge to record Rs200/kg in Pakistan
Sugar prices have soared to Rs200/kg in cities like Hyderabad and Lahore, following the government’s January decision to export 75,000 metric tons amid falling local prices. Critics say the move backfired, creating artificial scarcity. Despite a production of 6.4 million metric tons, reliance on imports is growing. The government’s price cap of Rs164/kg has failed to stabilize markets.
Prices have surged to Rs200 per kilogram in some cities due to government export and import policies.
Citing a decline in local prices, which had reportedly dropped from the official rate of Rs140 to Rs120 per kilogram, the government permitted the export of 75,000 metric tons of sugar in January of this year. But now that the decision has backfired, sugar prices have soared to between Rs190 and Rs200 per kilogram in several cities, raising serious questions about who benefited and who is paying the price.
Price increases in major cities
Lahore: A 50 kg bag of sugar now costs Rs9,100 after the price increased by Rs18 to Rs20 per kg. Sugar is now selling for between Rs195 and Rs200 per kg in retail markets, while the wholesale price has increased to Rs182.
Prices in Islamabad and Rawalpindi have increased to between Rs. 180 and Rs. 190 per kilogram.
Karachi: A kilogram of sugar costs between Rs. 185 and Rs. 190.
Hyderabad: Rs200 per kg is the highest price to date.
Quetta: Costs per kilogram range from Rs190 to Rs195.
Sugar costs Rs190 per kilogram in Faisalabad and Peshawar.
The local market now depends on imports to stabilize prices, despite 6.4 million metric tons of sugar being produced overall in the most recent fiscal year. This underscores what many analysts perceive as a policy failure.
By raising the official price to Rs164 per kilogram, the government attempted to exert control over the situation, but this measure was unsuccessful in establishing stability. The decision to export sugar at a time when local prices were already unstable, according to critics, has created artificial scarcity and boosted profits for some parties involved.
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Source : The Opinion
