Raw Sugar
ISLAMABAD: The federal government has decided to import raw sugar (Shakkar) to stabilize sugar prices in the country and provide relief to consumers. The move aims to curb the rising cost of sugar in the local market and ensure its availability at reasonable rates.
According to a press release issued by the government, the import of raw sugar will help bring down prices while also increasing future sugar production, as it can be refined and converted into sugar locally.
The decision comes at a time when Pakistan’s sugar exports to Afghanistan have recorded an unprecedented increase of 4,332% in the first seven months of the fiscal year 2024-25.
Official figures indicate that from July to January, Pakistan’s sugar exports to Afghanistan surged to $262.68 million, compared to just $5.93 million during the corresponding period in 2023. This translates to an increase of $256.76 million on a year-over-year basis, making sugar the largest contributor to Pakistan’s total exports to Afghanistan.
Since December, sugar prices in the local market have risen sharply by Rs26 per kilogram. Last year, profiteering caused sugar prices to climb as high as Rs180 per kilogram, creating difficulties for consumers.
According to Wholesale Grocers Association Chairman Rauf Ibrahim, sugar prices in the wholesale market have already reached Rs150 per kilogram, while advance deals for March indicate a further rise to Rs152 per kilogram.
Traders claim that the hoarding mafia is actively manipulating the market, and with the arrival of Ramazan, there is a significant risk of further price hikes. Pakistan’s monthly sugar consumption stands at around 550,000 tons, but during Ramazan, this demand surges to nearly 1 million tons.
Market experts and traders warn that if the government does not take immediate action, sugar prices could spiral further in the coming weeks. The federal cabinet had earlier approved the export of an additional 500,000 metric tons of sugar in October 2024, a decision that has played a significant role in the current price surge.
However, the cabinet had imposed conditions to ensure price stability and domestic supply, including fixing the retail price of sugar at Rs145.15 per kilogram and closely monitoring prices to prevent inflation. It was also decided that if sugar prices exceeded this benchmark, all exports would be immediately halted.
With Ramazan approaching and demand expected to rise sharply, the government’s decision to import raw sugar is seen as a critical step in stabilizing prices and ensuring an adequate supply for consumers.
However, it remains to be seen whether this measure will be sufficient to counteract market forces and prevent further inflation in the sugar sector.
