Sugar prices ease but retail costs still high despite govt cap

ISLAMABAD: Pakistan’s sugar prices are on a downward trend as the government enforces tighter compliance measures to stabilise the market, Deputy Prime Minister and Foreign Minister Ishaq Dar said after a review meeting on Friday.

Dar, who chaired the meeting, expressed satisfaction with the recent decline and directed the Pakistan Sugar Mills Association (PSMA) to ensure retail prices remain at or below Rs164 per kilogram nationwide. He reaffirmed the government’s commitment to monitoring supply and regulating prices to maintain affordability for consumers.

Yet, despite government-imposed price caps, market rates remain elevated. While Dar set the retail ceiling at Rs164/kg and ex-mill prices below Rs159/kg on March 19, sugar is selling for Rs170-180/kg in the open market. Official data from the Pakistan Bureau of Statistics (PBS) shows the national average retail price at Rs168.8/kg as of March 27, down from Rs170.4/kg the previous week. Prices have surged since late November 2024, when sugar retailed at Rs131.85/kg. The spike coincided with robust exports, as Pakistan shipped 757,597 metric tons of sugar worth $407 million in the first seven months of the fiscal year, including 124,793 tons valued at $64.34 million in January alone, according to the PBS data. Despite sugar mills committing to keep retail prices under Rs140/kg, costs soared while exports continued until January 2025, fueling concerns over domestic supply management.