Sugar prices decrease after govt crackdown

KARACHI: The prices of sugar have come down considerably in Pakistan after a crackdown on sugar hoarding and subsequent government pressure on the sugar mafia.

The effects can be observed in major trading centers, especially in Karachi and Punjab. In Karachi, the cost of sugar on a wholesale basis has reduced from Rs200 per kilogram to Rs150 per kilogram, with market reports pointing towards a cut to Rs146 per kilogram.

Punjab is also witnessing a similar trend, where wholesale prices have plunged to Rs145 per kilogram. Abdul Rauf Ibrahim, chairperson of the Wholesale Grocers Association, observed that government actions were instrumental in ensuring a stable market and halting profiteering of basic goods.

Ibrahim further added that short-term sugar imports are being recorded at Rs 135 per kilogram, marking a forecast of a cut in sugar prices in the upcoming days.

He added that constant government surveillance and the current sugar cane crushing season may bring sugar prices down further to Rs100 per kilogram.

Traders explained that the price decline occurred because sugar is abundantly available in the country, with sufficient stock reserves to provide an uninterrupted supply. In addition, they observed that approximately 150,000 tons of sugar are available in warehouses because of imports.

Market players considered continuous regulation, enforcement against grain hoarders, and continuous crushing operations essential in ensuring price stability.

Consumers have welcomed this fall and have expressed hope that this will soon bring relief at a retail level with lower wholesale prices.