The Federal Bureau of Statistics FBS has reported another increase in sugar prices across Pakistan with consumers now paying an additional Rs 232 per kilogram compared to the previous week According to data released on July 4 2025 sugar prices continue to rise sharply impacting both the average and maximum retail rates .
Currently the national average price of sugar stands at Rs 18492 per kilogram up from Rs 18260 last week In certain regions prices have surged even higher reaching a maximum of Rs 196 per kilogram .
This sharp rise reflects a significant year on year increase Last year the average sugar price was Rs 14472 per kilogram meaning that sugar prices have jumped by over Rs 40 per kilogram in just 12 months .
Underlying Causes Behind the Price Surge
Supply Constraints and Hoarding
Supply Constraints and Hoarding
Market insiders and industry experts “point to hoarding by middlemen and weak enforcement of government price controls as key contributors to the sustained price increases These illegal stockpiling practices have limited market supply thereby inflating prices .
Global and Seasonal Market Trends
Pakistans decision to import between 250000 and 500000 tonnes of raw sugar necessitated by a weak domestic sugarcane harvest has also impacted both international markets and local sentiment While imports were intended to stabilize supply delays in shipments and uncertainty in the market have prevented any significant relief for consumers so far .
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Rising Domestic Demand
High domestic demand particularly ahead of the upcoming wedding season and Ramadan has added additional pressure on prices Despite the surge in costs sugar consumption remains strong across the country keeping market prices elevated .
Impact on Consumers and Retailers
Consumers are bearing the brunt of these increases especially as sugar prices edge closer to the Rs 200 per kilogram mark Many low and middle income households are struggling to afford sugar alongside the rising costs of other essential commodities .
Wholesale traders have also expressed serious concern The Wholesale Grocers Association has warned that if the government fails to take effective action prices could surpass Rs 200 per kilogram in the near future They have attributed the price surge to what they describe as a powerful sugar cartel manipulating market stocks .
Global Context and Market Reaction
International sugar markets have also shown volatility New York sugar futures rose by 139 percent last week while London ICE white sugar futures declined by 15 percent .
Pakistans announcement of large scale sugar imports caused a temporary spike in global sugar futures as traders rushed to cover short positions However global prices remain relatively low due to abundant global supply .
Government Measures and Outlook
Import Strategy
In response to the crisis “Pakistans Economic Coordination Committee ECC has approved sugar imports totaling 500000 metric tons aimed at stabilizing the domestic market and ensuring sufficient supply .
Policy Gaps and Regulatory Failures
Despite this intervention experts have raised concerns about the lack of tax relief and subsidies on imported sugar They argue that inefficient policies and limited market oversight continue to fuel price instability .
Calls for Reforms
Economists and consumer advocates are calling for comprehensive market reforms including stricter anti hoarding enforcement improved price monitoring and more transparent sugar procurement processes They stress that without such measures Pakistan will remain vulnerable to future food inflation shocks .