Sugar prices surged in Islamabad and other parts of the country despite the ongoing sugarcane crushing season.
The Dealers Association has expressed concerns over an artificial shortage created by sugar exports, which is driving up prices. They warn that if the so-called “sugar mafia” behind this manipulation is not addressed, prices could escalate to Rs. 170 per kilogram during Ramadan.
According to the Dealers Association, sugar prices have surged by Rs. 18 per kilogram within a few days, with the current ex-mill rate ranging between Rs. 140 and Rs. 143 per kilogram.
This marks a sharp increase from the December ex-mill rate of Rs. 125 per kilogram. The Dealers Association has set the future trading price for February at Rs. 145 per kilogram, but sugar is already being sold at Rs. 150 per kilogram in smaller retail outlets.
This situation is particularly alarming given the conditions set by the federal cabinet last year when approving the export of 500,000 metric tons of sugar. These conditions included a fixed retail price of Rs. 145.15 per kilogram to stabilize the market and ensure adequate supply, but these measures now appear ineffective.
