Sugar prices soar in Pakistan, burdening consumers

Sugar prices in Pakistan are skyrocketing, burdening consumers with an additional PKR 166 million per day.

Despite the commencement of the crushing season, the ex-mill price of sugar has surged from PKR 116 to PKR 126 per kilogram in the past month.

With a monthly consumption of 500,000 tons across the country, this PKR 10 increase translates into a substantial daily financial impact on consumers.

Sugar dealers attribute the price hike to speculators entering the market and booking February's future ex-mill rate at PKR 134 per kilogram.

At the retail level, sugar is being sold to consumers at PKR 140 per kilogram, with the risk of further increases looming.

Industry sources cite abnormally high temperatures in May and June due to climate change as a factor affecting sugar recovery from sugarcane, with an average extraction of 10 kilograms of sugar from 100 kilograms of sugarcane.

Hamid Mallih, Chairman of the Agri Policy Research Institute, revealed that millers in Punjab are purchasing cane from growers at rates of PKR 350 to PKR 400 per 45 kilograms, instead of the standard 40 kilograms. While the overall crop is healthy, sugar recovery is expected to be lower by 0.2 to 0.4% by the end of January 2025.

Last year, Pakistan produced 6.8 million tons of sugar, with 700,000 tons exported.