Despite Government Orders, Sugar Prices Remain High Across Pakistan

Islamabad:Despite repeated directives from Deputy Prime Minister **Ishaq Dar** to reduce the **retail price of sugar to Rs164 per kg**, prices have not stabilized, with consumers continuing to pay **Rs180–185 per kg** in local markets. Meanwhile, the wholesale rate stands at **Rs8,600 for a 50 kg bag**, translating to **Rs172 per kg**.
At the beginning of the year, sugar was priced at **Rs140 per kg**, while a 50 kg bag cost around **Rs6,200**. The significant price hike has followed the government’s controversial decision to **allow sugar exports**, a move that was approved **on the condition** that **domestic prices would remain unaffected** — a promise that has not been kept.
### Sugar Export & Price Surge
In response to pressure from sugar mill owners, the government allowed the **export of 1.25 million metric tons of sugar** between **June and October 2024**. According to official data, the bulk of these exports — worth **\$262.7 million** — went to **Afghanistan** in the first seven months of the current fiscal year.
Despite this, a **14 May meeting chaired by Deputy PM Ishaq Dar** failed to yield results. Dar had ordered a **reduction of the ex-mill price from Rs164 to Rs159 per kg**, but sugar millers have **not complied**. This is the **second time** in recent months the Deputy PM has intervened — a **similar order was issued in March 2025**, also without any tangible impact on retail prices.
### Retailers Push Back
Retailers argue they are **purchasing sugar at Rs172 per kg** from wholesalers, and **with additional transport and operational costs**, it is **impossible** to sell sugar at the government-mandated **Rs164 per kg**.
> “If the government wants sugar sold at Rs164, they must ensure wholesale prices drop to Rs159,” one shopkeeper said.
The situation has once again highlighted the **disconnect between government pricing directives and market realities**, as well as the **failure of regulatory enforcement**, particularly after sugar exports have tightened domestic supply.
### Summary:
* **Current retail price**: Rs180–185 per kg
* **Govt-mandated retail price**: Rs164 per kg
* **Govt-mandated ex-mill price**: Rs159 per kg
* **Export allowed**: 1.25 million metric tons
* **Top importer**: Afghanistan (\$262.7 million in FY 2024–25)
With rising inflation and public frustration, the **government faces mounting pressure** to take stronger steps to **regulate commodity prices** and **prioritize domestic supply over exports**.





