Pakistan Sugar prices may surge before crushing season
Pakistan’s sugar prices may rise before the crushing season starts on November 15, as officials warn of artificial shortages by market players. Despite 1.7 Mt in reserves—enough until mid-November—retail rates average Rs 179/kg. Authorities blame speculative hoarding, not supply gaps, for past surges and call for stricter market monitoring.
There are growing concerns that sugar prices in Pakistan could rise even further before the upcoming crushing season begins, as authorities warn of possible market manipulation.
During a recent meeting of the National Assembly Standing Committee on Commerce, representatives from the Ministry of Industries and Production cautioned that certain market players, including wholesalers, might deliberately engineer an artificial shortage before November 15 — the date when the new sugar crushing season is set to start.
According to ministry officials, Pakistan currently holds 1.7 million tons of sugar in reserves, a quantity deemed sufficient to meet domestic demand until mid-November. Based on current stock levels and consumption patterns, they see no immediate need to import sugar until November 2025.
However, officials noted that artificial scarcity could still be created to drive up retail prices, putting an extra financial burden on consumers.
The committee was informed that during the previous fiscal year, Pakistan exported sugar worth $402 million, generating revenue of around Rs 112 billion. At the time of export, retail sugar prices in the domestic market ranged between Rs 125 and Rs 130 per kilogram.
Committee convener Atif Khan questioned how prices later spiked to Rs 200 per kilogram, despite an understanding with sugar mill owners that retail prices would be capped at Rs 140. “This clearly indicates that prices surged after the export took place,” he remarked.
In response, officials explained that even after the government halted sugar exports, prices in the local market continued to climb. They attributed this trend to market manipulation and speculative hoarding rather than genuine supply shortages.
Currently, the average retail price of sugar in Pakistan stands at around Rs 179 per kilogram, with some regions witnessing even higher rates. Experts warn that unless strict market monitoring and price controls are enforced, consumers may face further hikes in the coming weeks.
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Source : Minute Mirror
