The federal government has announced plans to import raw sugar (Shakkar) to help stabilize local prices and ease the financial burden on consumers, according to an official statement released on Monday.
This initiative aims to counter the sharp increase in sugar prices, which have risen by Rs26 per kilogram since December. Authorities believe that bringing in raw sugar will not only help regulate market rates but also contribute to future production, as it can be refined domestically.
The decision follows a dramatic surge in Pakistan’s sugar exports to Afghanistan, which grew by an astonishing 4,332% in the first seven months of the current fiscal year. From July to January, sugar exports to Afghanistan reached $262.68 million, a massive jump from just $5.93 million during the same period in 2023—an increase of $256.76 million year-over-year.
Sugar has now become Pakistan’s top export to Afghanistan, even as domestic prices continue to climb. Wholesale rates currently stand at Rs150 per kg, while forward contracts for March have already reached Rs152 per kg.
Market traders caution that hoarders are taking advantage of the situation, and with the arrival of Ramazan, prices could spike even further. Pakistan’s monthly sugar consumption is approximately 550,000 tons, but demand doubles to nearly 1 million tons during Ramazan.
Experts link the current price surge to the federal cabinet’s decision in October 2024, which permitted the export of an additional 500,000 metric tons of sugar. Despite setting a retail price ceiling at Rs145.15 per kg and pledging strict oversight, traders argue that profiteering has continued to drive up costs. Although the cabinet had warned that sugar exports would be halted if prices exceeded the threshold, enforcement remains a challenge.
With Ramazan fast approaching and demand set to escalate, industry experts emphasize the urgency of immediate government intervention to curb inflationary pressures on consumers.
