Sugar prices in Pakistan have experienced a sharp rise over the past week, driven by the active involvement of speculators and hoarders disrupting the market.
Within just seven days, the cost of sugar increased by Rs10 to Rs15 per kilogram. Speculations suggest the price could escalate by an additional Rs8 in January.
Currently, the ex-mill rate stands at Rs121 per kilogram. Large retailers are selling sugar at prices between Rs130 and Rs135 per kilogram, while small shopkeepers are charging as high as Rs140 to Rs150 per kilogram.
Market forecasts indicate that wholesale sugar prices may reach Rs128 per kilogram by December and could climb further to Rs133 in January 2025.
In October, the Sugar Advisory Board (SAB) conditionally approved the export of 500,000 tons of refined sugar. This decision was made during a meeting chaired by Federal Minister for Industries and Production Rana Tanveer Hussain, which included key stakeholders such as the Pakistan Sugar Mills Association (PSMA).
The board’s discussions focused on evaluating sugar stock availability and addressing the recent price hikes.
