KARACHI – July 12, 2025: The Wholesale Grocers Association has raised alarms over artificial inflation in Pakistan’s sugar market, claiming that 2.6 million tonnes of sugar are currently being illegally hoarded. According to Association Chairman Abdul Rauf Ibrahim, if the government initiates a serious crackdown on the sugar mafia, wholesale prices could drop dramatically to Rs150 per kg.
Currently, sugar retail prices have eased slightly—falling from a recent peak of Rs200 per kg to Rs195. Similarly, wholesale prices are now between Rs178 and Rs180, down from Rs185. However, Ibrahim insists these reductions are temporary and the real solution lies in releasing hoarded stock into the market.
“If just half of this illegally stored sugar is pushed into the market,” Rauf said, “it would not only lower prices, but also deter future stockpiling.” He warned that if the government chooses import over enforcement, Pakistan could end up wasting over $265 million in foreign exchange—at a time when the economy is under pressure and reserves are shrinking.
Rauf emphasized that the country does not need imported sugar to meet local demand. “There is more than enough sugar in the country,” he added. “What we need is courage and political will to confront those who are manipulating the system for profit.”
He credited recent price stabilization to public outcry, media coverage, and growing pressure from trade bodies, which discouraged immediate imports. However, he warned that unless decisive action is taken against hoarders and smugglers, prices could spike again—especially with the festive season approaching.
The association urged the government to prioritize local market regulation over foreign purchases. “Cracking down now,” Rauf concluded, “could offer huge relief to consumers, stabilize markets, and save valuable foreign exchange.”