Sugar prices soar to record Rs195 per kg across Pakistan

ISLAMABAD: Sugar prices have reached record levels across Pakistan, with prices reaching Rs 195 per kg in some cities, raising concerns among consumers and prompting the federal government to take immediate action.

According to market reports, the highest price of sugar has been recorded in Islamabad at Rs 195 per kg, while residents of Rawalpindi, Karachi and Peshawar are also paying Rs 190 per kg. The price in Quetta is Rs 186, followed by Khuzdar and Sialkot where sugar is being sold at Rs 185 per kg.

In the southern and central regions, prices remained stable. Hyderabad, Bahawalpur, Multan and Bannu are seeing rates of Rs 180 per kg, while sugar is being sold at Rs 175 per kg in Sukkur and Larkana, leading to a significant increase in retail prices across the country.

Govt decides to import sugar to stabilize prices

In response to rising prices and growing public frustration, the government has decided to import 750,000 metric tons of sugar. According to officials from the Ministry of National Food Security, the decision is aimed at stabilizing domestic markets and addressing the ongoing shortage.

Under this strategy, the federal cabinet has given in-principle approval to import 500,000 metric tons of refined sugar and is expected to approve another 250,000 metric tons of raw sugar in the coming days.

Exports were blamed for the local shortage and inflation

Interestingly, the crisis comes after a period of aggressive sugar exports. From July to May, Pakistan exported more than 765,000 metric tons of sugar, earning over Rs112 billion. Officials confirm that exports have increased by more than 22 percent compared to the previous year.

However, this export boom has now been linked to a decline in the local market, which is causing a sharp increase in retail prices of sugar across the country.

According to the Ministry of National Food Security and Research, a day earlier, the federal government had decided to import 500,000 tonnes of sugar.

Rejecting reports of a sugar shortage, the ministry clarified that Pakistan currently has adequate sugar stocks to meet domestic demand. “The impression that there is not enough sugar for public consumption is completely baseless,” a ministry spokesperson said in a statement.

The ministry explained that the decision to allow sugar exports last season was taken only after confirming excess stocks. Officials also reiterated that no subsidy was offered on exported sugar – a significant departure from past practices.

The statement added that the recent decision to import sugar was solely for price stability and public convenience, and not due to shortages. “The presence of excess stock will help balance market forces.”

The ministry also addressed recent media reports suggesting instability in the agricultural commodity market, calling them “incorrect and misleading.” Officials clarified that the buying and selling of agricultural products is based on seasonal cycles, not the fiscal year.