The price of sugar in Karachi has reached an all-time high ahead of Ramadan, with a significant increase in wholesale prices.
Within a single day, the wholesale rate rose by Rs5, reaching Rs153 per kilogram on Wednesday. Retailers in the city are now charging Rs160 per kilogram, citing their inability to absorb the frequent hikes in wholesale rates. Over the past few days, the price of a 50 kg bag has surged by Rs150-200.
The price surge has sparked concerns about hoarding and artificial shortages, as speculators anticipate increased demand during the holy month.
Rauf Ibrahim, Chairman of the Karachi Wholesalers Grocers Association (KWGA), noted that the wholesale price has jumped by Rs13 to Rs154 per kilogram in the past three to four days. Speculators and investors are seizing the opportunity to profit during Ramadan, when sugar demand doubles from 550,000 tons to 1.1 million tons.
According to the Sensitive Price Index (SPI), sugar prices have climbed to Rs150-165 per kilogram from Rs145-160 per kilogram in the past month. In early January, the price range was Rs130-150 per kilogram.
Earlier, the federal government announced a Rs20 per kilogram subsidy on sugar prices nationwide for Ramadan. Consequently, sugar will be available at a fixed price of Rs130 per kilogram in all four provinces. The Ministry of Industry and Production has communicated with the chief secretaries of each province and the Pakistan Sugar Mills Association to maintain this price during Ramadan.
