Karachi: According to reports from Tribune, the prices of sugar in Pakistan have surged by 59% over the last ten months, reaching Rs 140 per kg, following the government’s decision to allow sugar exports.
This increase in sugar prices has proven profitable for sugar companies, resulting in a net profit of Rs 14 billion during the first nine months (Jul-Mar) by selling Rs 235 billion worth of sugar, as per data collected by Topline Research.
However, the surge in sugar prices has also contributed to a significant spike in inflation, reaching a six-decade high of 38% during the last fiscal year, which concluded on June 30, 2023.
The government’s decision to permit the export of 250,000 tonnes of sugar in January 2023 was aimed at attracting US dollars to bolster the country’s foreign exchange reserves. However, this move led to a subsequent increase in the domestic price of sugar, prompting traders to import the sweetener from international markets to meet local demand.
