Pakistan : Sugar prices hit record Rs220 amid market crisis
Sugar prices in Pakistan have surged to as high as Rs220 per kg in several cities, driven by supply disruptions and the suspension of the government’s online sugar sales portal. Traders report shortages as mills halt distribution ahead of the crushing season. Authorities have launched inquiries into past export decisions and alleged cartelisation.
KARACHI: Sugar prices have soared to Rs220 per kilogram in several cities across Pakistan amid supply shortages, market disruptions, and controversy over the government’s trade decisions.
According to data from the Pakistan Bureau of Statistics (PBS), sugar prices rose by Rs23 per kg in Sargodha and Rs5 per kg in Karachi and Hyderabad within a week, reaching the highest recorded rate of Rs220 per kg nationwide.
In Rawalpindi, Karachi, and Sargodha, retail prices have climbed to Rs200 per kg, while in Hyderabad they rose from Rs190 to Rs195. PBS figures show a negligible decline of 12 paisas in the national average price—down to Rs188.69 per kg from Rs188.81 last week—but the yearly comparison shows a steep jump from Rs132.47 per kg in 2023.
In Lahore, market prices have hit between Rs200 and Rs220 per kg, traders said.
The price surge comes days after the National Assembly Standing Committee on Commerce, chaired by Muhammad Jawed Hanif Khan, held a meeting to review export and trade policies. The committee urged authorities to identify individuals responsible for past decisions allowing sugar exports that “contradicted national interests,” and demanded an inquiry into those who approved them.
A subcommittee headed by Dr. Mirza Ikhtiar Baig, along with Ms. Tahira Aurangzeb, Farhan Chishti, and Gul Asghar Khan, was formed to investigate the issue. The committee also directed the Competition Commission of Pakistan (CCP) to explain its failure to prevent cartelisation in the sugar industry.
The market turbulence has intensified following the government’s decision to shut down the online sugar sales portal, which dealers say has triggered an artificial shortage. Sugar is now being sold between Rs210 and Rs220 per kg in many areas.
Dealers argue that the government’s plan to import sugar before the crushing season—set to begin around November 20—has backfired, as both local and imported supplies have dried up. Local mills have halted distribution, worsening the crisis.
Sugar mill owners have urged the government to reopen the sales portal immediately, warning that prices could rise further to Rs230–250 per kg if corrective action is not taken.
During a recent meeting with Food Security Minister Rana Tanveer, the Sugar Mills Association agreed to his recommendations, but despite assurances to reopen the portal, it remains closed. Dealers continue selling sugar at inflated rates of Rs180–190 per kg, far above the official price of Rs165.
Mill owners have accused dealers, allegedly in collusion with influential figures, of profiteering from the crisis. They also warned that without activation of the Federal Board of Revenue’s (FBR) track-and-trace system, the situation may worsen further in the coming week.
To Read more about Sugar Industry continue reading Agriinsite.com
Source : Pakistan Today
