Amid large sugar carryover stocks and healthy crop size, a sudden hike in sugar prices during the ongoing crushing season has sparked concern. Market sources suggest that, in the absence of an indicative price for sugarcane, millers have been left with significant control over purchasing from growers and setting the market price of sugar.
Market insiders have reported an increase of Rs 10-15 per kg in sugar prices, which they claim is unjustified. As of November 30, 2024, the physical sugar stock stood at over 766,093 tons, with production from November 16 to 30, 2024, amounting to 183,960 tons. This brings the total available sugar stock to well over one million tons, prompting experts to assert that there is no reason for panic or price increases.
They attributed the price surge to speculators trying to manipulate the market. “With such a healthy stock and a large sugarcane crop, the country has sufficient sugar supply,” a source said.
On the other hand, the Pakistan Sugar Mills Association (PSMA) dismissed the allegations, stating that speculators with vested interests were behind the rumours of price hikes. According to a PSMA spokesperson, ex-mill sugar prices have remained within the government’s declared limit of Rs 140 per kg, set by the Economic Coordination Committee (ECC) on June 13, 2024. The spokesperson highlighted that the sugar industry had agreed to this price under pressure due to a sugar glut, to enable the liquidation of surplus stocks and minimize losses.
The Federal Ministry of Industries echoed these sentiments. Minister for Industries and Production, Rana Tanveer Hussain, assured that there had been no price surge nationwide. He confirmed that sugar prices remain stable, with retail markets selling sugar at Rs 130 per kilogram and wholesale markets offering it at Rs 124 to Rs 125 per kilogram.
Minister Hussain emphasized that, under Prime Minister Shehbaz Sharif’s directives, sugar prices are being closely monitored to ensure affordability for the public. He reaffirmed the government’s commitment to maintaining price stability and taking necessary measures to prevent unwarranted fluctuations in the market.
