Daily Times

Consumers continue to pay high prices for sugar despite Deputy Prime Minister Ishaq Dar’s announcement to cap the price at Rs164 per kg. The national average price of sugar across various cities remains between Rs164 and Rs180 per kg. In Karachi, the wholesale price briefly dropped to Rs158 per kg after Prime Minister Shehbaz Sharif’s March 15 announcement. However, retailers did not pass on the price reduction, keeping prices high during the busy Ramazan period.

The government has failed to ensure consumers can purchase sugar at Rs130 per kg. According to  President of the Karachi Wholesalers Grocers Association, no serious action has been taken against sugar millers. He also noted that while ministers interacted with the millers, wholesale prices quickly returned to Rs168 per kg. Ibrahim called for an investigation into sugar production costs to better understand the price surge.

The Pakistan Sugar Mills Association spokesperson dismissed the claim that sugar exports were the cause of price increases. He explained that the industry had surplus sugar from the previous season, which had been pledged with banks at high interest rates. The spokesperson argued that allowing exports was essential for the industry’s survival. He also stated that the high sugarcane prices were crucial for the sustainability of the agriculture sector and the sugar industry.

Furthermore, the sugar industry criticized media campaigns and market forces like hoarders and Karyana merchants for inflating prices. The industry has urged the government to appoint independent cost auditors to verify production costs and consider adopting a two-tier pricing system. This would address both domestic and commercial sector prices separately.