Pakistan is once again witnessing a sugar crisis as prices have surged dramatically across the country, touching Rs200 per kilogram in some cities, following a controversial cycle of export and import decisions made by the government.

Earlier this year, the government allowed the export of 75,000 metric tons of sugar in January, citing a drop in local prices, which had reportedly fallen from the official rate of Rs140 to Rs120 per kilogram. However, the decision has now backfired, with sugar prices skyrocketing to between Rs190 and Rs200 per kilogram in various cities, prompting serious concerns about who benefited from the move and who is bearing the burden.

Price surges across major cities

Lahore: Sugar price rose by Rs18 to Rs20 per kg, with a 50kg bag now costing Rs9,100. The wholesale rate has climbed to Rs182, and in retail markets, sugar is being sold for Rs195 to Rs200 per kg.
Islamabad/Rawalpindi: Prices have jumped to Rs180–Rs190 per kg.
Karachi: Sugar is selling at Rs185–Rs190 per kg.
Hyderabad: The highest rate so far, Rs200 per kg.
Quetta: Prices range between Rs190 and Rs195 per kg.
Faisalabad and Peshawar: Sugar is being sold for Rs190 per kg.

Despite a total sugar production of 6.4 million metric tons in the last fiscal year, the local market is now dependent on imports to stabilize prices, highlighting what many analysts see as a policy failure.

Govt response and market instability

The government tried to control the situation by increasing the official price to Rs164 per kilogram, but this intervention failed to bring stability. Critics argue that the move to export sugar at a time when local prices were already volatile has resulted in artificial scarcity and windfall profits for certain stakeholders.

Also Read: Cabinet okays import of 500,000 tons of sugar to stabilise prices

Earlier on Tuesday, the federal cabinet approved the import of 500,000 tons of sugar to address supply-demand imbalances and stabilise prices in the domestic market, the Ministry of National Food Security and Research said.

According to an official statement, the sugar will be imported through the government sector, with all necessary arrangements reportedly finalised. The ministry confirmed that the procurement process is being launched immediately to avoid a potential crisis in sugar availability.

The move follows a recent high-level meeting chaired by Deputy Prime Minister and Foreign Minister Ishaq Dar, in which earlier recommendations for sugar imports were reaffirmed. Officials said the measure was taken in view of consumer protection and broader economic stability.