Govt to import raw sugar amid rising prices

ISLAMABAD: The federal government of Pakistan has decided to import raw sugar, also known as Shakkar, to stabilize sugar prices and afford relief to consumers.

This will help reduce sugar prices, which have risen by Rs26 per kg since December and which now stand at Rs150 per kg in the wholesale market. It will also help bolster sugar production in the future as it will be refined and converted to sugar locally.

This decision comes at a time when sugar exports to Afghanistan have surged by 4,332% in the first seven months of FY 2024-25, amounting to $262.68 million, thus making sugar the largest contribution to Pakistan’s exports to Afghanistan.

But this surge in exports has sparked concerns regarding domestic availability and affordability. They have warned that the hoarding mafia is quite active, and with Ramazan fast approaching, further price hikes might not be avoided.

Monthly sugar consumption in Pakistan is 550,000 tons, and in Ramazan, it jumps to around 1 million tons. All these contributed to a surge in exports because of the federal cabinet’s approval to export another 500,000 metric tons of sugar in October 2024.

However, the cabinet has also put in certain conditions to keep a check on price stability and domestic supply, which included fixing sugar’s retail price at Rs145.15 kilogram.