Sugar prices across Pakistan have surged to unprecedented levels despite the start of the crushing season in Sindh and Punjab and significant stocks of imported sugar in the market. Wholesale and retail rates have climbed sharply over the past two days, raising concerns among traders and consumers.
According to Rauf Ibrahim, Chairman of the Wholesale Grocers Association, the wholesale price of sugar in Karachi has reached an all-time high of Rs202 per kilogram. He said sugar mill owners in Sindh have halted supplies to Karachi’s wholesale markets for the past 48 hours, triggering the latest spike. He added that an organised pattern is emerging nationwide, with wholesale prices rising to Rs175 per kg in Punjab and Rs200 per kg in Khyber Pakhtunkhwa.
Retail prices in several parts of Karachi have now climbed to between Rs210 and Rs215 per kg, further straining household budgets.
Ibrahim warned that wholesale prices could rise even further in the coming days if supplies remain suspended. He noted that mills have been purchasing sugarcane from farmers at Rs350 to Rs400 per maund, which translates to a cost of roughly Rs10 per kilogram for mill owners—far below the current market prices.
He criticised the government for failing to curb alleged cartelisation in the sugar industry, stating that the IMF has already flagged the issue in its report. “The IMF’s stance is correct,” Ibrahim said, urging the government to take immediate and strict action against what he described as a coordinated effort by sugar mills to manipulate prices.
With no intervention so far, traders fear the crisis may deepen as the market remains unstable and consumers brace for further inflationary pressure.
