Sugar Prices Surge to Record High Rs 185 per kg in Pakistan, Triggering Concerns of Hoarding and Smuggling

Sugar prices in Pakistan have surged to Rs 185 per kg, prompting the country's Economic Coordination Committee (ECC) to call on relevant authorities to investigate potential hoarding and smuggling activities.

The escalating wholesale rates have created an opportunity for online marts and retail shops to capitalize on the already accumulated sugar stocks. Market traders have raised concerns that sugar may be finding its way to Afghanistan through informal channels, followed by rampant hoarding and speculative practices. This unexpected price hike is particularly surprising given that Pakistan's domestic sugar stocks are reported to be at 2.27 million tonnes.

During the fiscal year 2022-23, Pakistan managed to export 215,751 tonnes of sugar, fetching USD 104 million—an impressive figure compared to the nil exports recorded in the preceding fiscal year. Notably, July of the current year saw sugar exports of 5,542 tonnes, earning USD 3.4 million, a stark contrast to the non-existent exports in July 2022. The Pakistan government granted permission for the export of 250,000 tonnes of sugar in January, under the condition that the Pakistan Sugar Mills Association (PSMA) would ensure that prices remained within the range of Rs 85-90 per kg (ex-mill) for the stocks from fiscal year 2021-22.

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Rauf Ibrahim, Chairman of the Karachi Wholesalers Grocers Association (KWGA), has voiced his demand for the caretaker government to enforce its authority decisively. He revealed that wholesale sugar prices have surged by Rs 21 per kg since August 1, a matter that requires immediate attention. Ibrahim expressed his concern over the lack of efforts to regulate sugar mill stocks and to curb hoarding practices carried out by investors and speculators.

In a call to action, Ibrahim suggested that the Supreme Court take suo moto notice of the escalating prices of essential food items such as sugar, wheat, and rice, along with the issue of hoarding. He further highlighted the significant revenue loss resulting from the widespread smuggling of sugar to Afghanistan.

As Pakistan grapples with the implications of soaring sugar prices, the nation's regulatory bodies face mounting pressure to address hoarding and smuggling concerns. The situation not only affects the accessibility of a crucial household commodity but also highlights the urgency for swift and effective measures to stabilize prices and ensure fair distribution.

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