Sugar Prices Soar Amid Rising Wholesale Rates

The retail price of sugar has surged to Rs180 per kilogram, up from Rs170, following a continuous increase in wholesale rates. Market traders link this spike to wholesale prices rising from Rs153 per kg to Rs168 per kg over the past two weeks.

Just last month, the national average price of sugar fluctuated between Rs145 and Rs160 per kg, showing a consistent upward trend ahead of Ramazan. At the start of January, sugar was available for Rs130 to Rs150 per kg. Some retailers who had previously stocked sugar at lower prices are now profiting from the price surge.

The Karachi Wholesalers and Grocers Association criticized the government's handling of the situation, arguing that authorities allowed sugar exports when wholesale prices were still Rs125-130 per kg.

Pakistan has exported 757,597 tonnes of sugar in the first seven months of FY25, generating $407 million. This marks a dramatic increase compared to 33,101 tonnes shipped in the same period last year, which brought in $21 million. However, the average export price per tonne has dropped from $636 in the previous fiscal year to $537 in FY25.

A Pakistan Sugar Mills Association (Punjab zone) spokesperson declined to comment on the recent ex-mill price hikes, stating that pricing varies by mill. However, the association dismissed claims that exports caused the price rise.

Industry insiders argue that nearly half of the exported sugar was sold at below production costs, leading to major financial losses. They warn that surplus production combined with export restrictions is placing an unmanageable strain on traders.