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Consumers in several parts of the country are facing yet another financial blow as the price of sugar continues to rise unabated. The surge in sugar prices has led to an increase in the costs of sweets, bakery items, and other sugar-based products, leaving many feeling the pinch.
In Rawalpindi, for instance, sugar prices have shot up to Rs190 per kg in the inner city and Rs195 per kg in the suburbs. In the wholesale market, a 50 kg bag of sugar has reached a staggering Rs9050.
Despite the alarming increase, the 60 price control magistrates in Rawalpindi district seem to be struggling to regulate the soaring sugar prices effectively. Moreover, the supply of sugar in and around Rawalpindi city is dwindling, adding to the challenges.
Salim Parvez Butt, president of the Central Grocery Merchant Association, expressed his concerns about rising wholesale prices, stating that they are now selling sugar for Rs190 per kg and Rs9050 per bag to cover transportation and other costs. Retail prices may soon reach as high as Rs200, he warned.
In Peshawar, the price of sugar has already surged to Rs200 per kg, with a sack of sugar reaching an astonishing price of Rs9,500. Consumers are increasingly distressed by the rapid increase in sugar prices.
Traders dealing in sugar have managed to profit from the continuous increase in prices, and the black market for sugar is beginning to thrive. Reports suggest that large investors are now putting their money into sugar and the dollar, anticipating further price hikes. Traders have accumulated significant quantities of sugar, anticipating even higher prices in the near future.
The smuggling of sugar to Afghanistan has also played a significant role in the price increase. Despite efforts by the Economic Coordination Committee (ECC) to curb hoarding and smuggling, consumers continue to bear the brunt of rising rates.
Frustration is growing among consumers who not only face a Rs20 per litre increase in petroleum products but also witness the consistent depreciation of the rupee against the dollar. Market traders suspect that large quantities of sugar are being smuggled to Afghanistan through informal channels, followed by hoarding and speculation.
These rising prices come as a surprise, given that the country’s sugar stocks currently stand at 2.27 million tonnes. While Pakistan managed to export 215,751 tonnes of sugar during the fiscal year 23, generating $104 million, there were no exports in the previous fiscal year. In July alone, exports amounted to 5,542 tonnes, earning $3.4 million, compared to zero exports in the same period last year.
