Sugar price in Pakistan soars to PKR 180 per kg as speculators 'control market'

Sugar prices in Pakistan have surged to PKR 180 per kilogram at the retail level during Ramadan, as speculators and limited supply from mills drive up costs, according to Chairman of the Wholesale Grocers Association Abdul Rauf Ibrahim.

Wholesalers have called on the government to intervene through imports and stricter market controls to protect consumers from further hikes.

Traders in Karachi’s Jodia Bazar — the country's largest grain market — accuse sugar millers of deliberately restricting supply to create an artificial shortage that has led to relentless price increases.

According to dealers, the ex-mill sugar price in Sindh and Punjab has jumped from PKR 155 to as much as PKR 168 per kg since the start of Ramadan.

Industry experts warn that as the crushing season nears its end, the country is expected to produce only 5.9 million tons of sugar this year against an estimated demand of 6.2 million tons. Adding to the crisis, they say, is the lack of buffer stock — a consequence of the government decision last season to allow the export of one million tons of sugar.

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"The government must intervene with a two-pronged strategy: first, take administrative action to curb profiteering, and second, immediately import sugar to stop speculative pricing," Ibrahim told Nukta.