Sugar Prices Rise Sharply Across Pakistan Amid Increased Export and Upcoming Ramadan

Sugar prices across Pakistan continue to soar, with the retail price per kilogram reaching 175 to 180 rupees. Just a month ago, the price was 140 rupees per kilogram, and the cost of a 50-kilogram sugar sack in markets has increased from 6,200 rupees to over 8,000 rupees.

The surge in prices comes after the government, under pressure from sugar mills, granted permission for additional sugar exports. With the holy month of Ramadan approaching, the prices have spiked significantly.

Last year, the government had allowed the export of 7.5 lakh tons of sugar from June to October 2024 and 5 lakh metric tons after October, promising that there was sufficient sugar in the country and that prices would remain stable. However, this decision, combined with the Ramadan rush, has led to price hikes.

Over the last seven months of the current fiscal year, the largest export market for Pakistani sugar has been Afghanistan, with exports totaling $26.27 million.

To offer some relief to the public during Ramadan, the government has announced that sugar will be sold at 130 rupees per kilogram in subsidized markets. However, in open markets, the price remains uncontrollable, with a 40-rupee increase per kilogram in just one month.

The Sugar Mills Association of Punjab has issued a statement saying that sugar prices are determined by supply and demand forces in the market. They also mentioned that ahead of Ramadan, speculation by hoarders is contributing to the price hikes, as rumors about sugar prices are circulating in the market.

Despite the ongoing price increases, the association asserts that Pakistan is still producing the cheapest sugar in the world.