Pakistan Sugar prices soar despite official rate, PBS data reveals
Sugar prices in Pakistan remain stubbornly above government-set levels despite official caps, with the national average at PKR 178.67/kg—well over the official rates of PKR 172–173/kg. PBS data shows extreme regional disparities: Karachi, Peshawar, and Bahawalpur face highs of PKR 190/kg, while Islamabad and some Punjab cities meet official rates.
The federal government’s efforts to control the price of sugar have largely failed, as new data from the Pakistan Bureau of Statistics (PBS) reveals that the average price remains well above the official rate. Despite a marginal decrease in the national average, consumers in major cities are still being forced to pay significantly inflated prices, sparking concerns about the effectiveness of government regulations and the role of market forces.
According to the latest PBS figures, the national average price of sugar has settled at PKR 178.67 per kilogram, a slight reduction of 66 paisa from the previous week’s average of PKR 179.33. However, this is a far cry from the official retail price of PKR 173 per kilogram set by the government for Punjab and Karachi, and PKR 172 per kilogram for Islamabad. The data highlights a stark discrepancy between policy and market reality, with consumers bearing the brunt of the inflated costs.
The report paints a grim picture of regional price disparities. Residents of key metropolitan areas like Karachi, Peshawar, and Bahawalpur are facing the highest prices, with sugar retailing for as much as PKR 190 per kilogram. This price is a full PKR 17 higher than the official rate for Karachi, indicating a significant failure in market enforcement. Even in Punjab, a province with a large number of sugar mills, the maximum price has touched PKR 190 per kilogram, showing that even proximity to production centers doesn’t guarantee fair pricing.
Conversely, some areas have managed to adhere to the official rates. The federal capital, Islamabad, has seen prices align with the government-mandated PKR 172 per kilogram. Similarly, several cities in Punjab, including Rawalpindi, have seen prices drop to the official rate of PKR 173 per kilogram. This disparity has led to public frustration, with many questioning why some regions are strictly regulated while others are left to the whims of the market.
The federal government had announced a new ex-mill price of PKR 165 per kilogram for sugar, effective from July 15. The goal was to provide relief to the public by ensuring that retail prices remained stable and affordable. The government’s price control mechanism, however, appears to have been largely ineffective. Despite a minimal drop in the average price, the data reveals that the overall cost of sugar has increased dramatically over the past year. A year ago, the average price of sugar was a more manageable PKR 146.75 per kilogram, a difference of nearly PKR 32 from the current average.
Industry analysts suggest that the government’s price caps are often circumvented through black-market sales and hoarding by wholesalers, who are reportedly exploiting the supply-demand gap to maximize profits. The PBS data, therefore, is not just a reflection of market prices but also a testament to the ongoing struggle between government policy and market-driven inflation. The continued high prices are likely to have a significant impact on household budgets, especially for low-income families, making a staple commodity increasingly unaffordable.
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Source : Minute Mirror
