Speculative trading in sugar has led to an unexpected price hike in Lahore, with prices rising even before the arrival of Ramazan and during the ongoing sugarcane crushing season.
In the past week, sugar prices have increased by Rs12 per kilogram in local markets. A 50kg bag of sugar has seen a significant price jump, reaching Rs7400 after an additional Rs600. Wholesale prices for sugar have surged from Rs136 per kilogram to Rs148, with retailers now selling it at Rs150 per kilogram.
Typically, sugar prices decrease during the crushing season due to the availability of fresh sugarcane. However, this year, the trend is the opposite, as prices continue to rise despite the full swing of the crushing season.
In December 2024, the ex-mill price of sugar was recorded at Rs125 per kilogram, but it has now escalated to between Rs140 and Rs143. According to a spokesperson from the Sugar Dealers Association, the ex-mill price for February is expected to reach Rs145.
The spokesperson attributes the price hike to the export of sugar and an artificially induced shortage of the commodity. There are concerns that if the situation remains unchecked, sugar prices could continue to climb as Ramazan approaches.
