Karachi: Consumers across the country continue to face high sugar prices, despite Deputy Prime Minister Ishaq Dar’s recent directive that the sweetener should not be sold for more than Rs164 per kilogram, reports The Dawn.
Reports indicate that the average national price of sugar in various cities remains between Rs164 and Rs180 per kg.
President of the Karachi Wholesalers Grocers Association (KWGA), Rauf Ibrahim, highlighted that the wholesale price of sugar in Karachi initially dropped from Rs168 to Rs158 per kg following Prime Minister Shehbaz Sharif’s announcement on March 15 to take action against hoarders. However, retailers did not reflect this price reduction, continuing to charge consumers higher rates, particularly taking advantage of increased demand during Ramazan.
“The government has failed to ensure sugar is available to consumers at Rs130 per kg,” Ibrahim stated. “Retailers are being penalised, but no substantial action has been taken against the millers.”
He further noted that after government officials engaged with sugar millers, wholesale prices returned to Rs168 per kg. He called for a thorough investigation into sugar production costs.
Meanwhile, a spokesperson for the Pakistan Sugar Mills Association (Punjab Zone) refuted claims that sugar prices are linked to exports.
“Some groups continue to spread misinformation, but the increase in prices is not due to exports,” the spokesperson said. “By the end of September 2024, the industry had surplus sugar production amounting to approximately 1.2 million tonnes, valued at Rs250 billion. This stock was pledged with banks at nearly 25% interest. Without export approval, Pakistan’s sugar industry—responsible for $5 billion in import substitution and producing some of the world’s most affordable sugar—would have collapsed.”
He further explained that in June 2024, the government and industry agreed that the ex-mill rate of sugar from the 2023-24 crushing season would remain at Rs140 per kg during the export period. However, sugar production costs vary each season due to fluctuating sugarcane prices.
“This season, sugarcane growers received record-high prices of up to Rs750 per maund, ensuring sustainability in the agriculture sector and encouraging better crops in the future,” he added. “Blaming price hikes on exports is misleading and unfair.”
The spokesperson also alleged that market forces, including hoarders and middlemen, were manipulating prices for profit through media campaigns. He reiterated the industry’s long-standing demand for independent cost auditors to verify sugar production costs for transparency.
Additionally, the sugar industry has proposed a two-tier pricing system, arguing that 80% of sugar is consumed by the commercial sector, which operates without price controls. The industry has expressed willingness to work with the government to develop a support mechanism for domestic consumers.
