Islamabad: The Secretary of Industries and Production has issued a warning that sugar prices in Pakistan could climb to (PKR) Rs. 256 per kilogram by October if immediate steps are not taken to ease the growing supply shortage, according to media report.
At present, sugar is being sold for Rs. 200 to Rs. 220 per kilogram in open markets. Utility Stores are offering limited quantities at a subsidized rate of Rs. 180 per kilogram. However, concerns are mounting that prices may spike sharply in the coming months.
Experts point to several causes behind the looming crisis. A decline in domestic sugarcane output due to poor weather, coupled with rising global sugar prices and reports of stockpiling by traders, are all driving the shortage. Additionally, the weakening of the Pakistani rupee has made sugar imports more costly, worsening the supply gap.
In response, the government is considering urgent interventions. Among them are allowing duty-free imports of sugar to boost availability and launching aggressive crackdowns on hoarders in Punjab and Sindh. Raids on suspected stockpiles have already begun.
The potential price hike has sparked anxiety among consumers already dealing with high inflation. Economists caution that a further rise in sugar prices could severely impact household budgets and push food inflation beyond its current rate of 30 percent.
A spokesperson for the Ministry of Industries confirmed that a full action plan will be submitted to the federal cabinet later this week. In the meantime, officials are appealing to the public to avoid panic buying, which could make the situation worse.
Authorities say they are closely tracking market trends and sugar stock levels, and promise to update the public regularly as efforts continue to prevent the feared October surge.
