Even as the federal government and millers pledge to provide sugar at Rs130 per kg nationwide, the wholesale price of the sweetener continues to climb, raising concerns ahead of the holy month of Ramazan.
Retailers in Karachi are already charging Rs160 per kg, citing relentless hikes in wholesale rates. The price of a 50 kg bag has been increasing by Rs150-200 daily over the past few days, making it difficult for shopkeepers to absorb the rising costs.
Karachi Wholesalers Grocers Association (KWGA) Chairman Rauf Ibrahim revealed that the wholesale rate had surged by Rs13 per kg, reaching Rs154 per kg in just three to four days. He attributed this spike to speculators and investors looking to profit from the increased demand during Ramazan, which is expected to rise to 1.1 million tonnes from the usual 550,000 tonnes.
“The federal and provincial governments need to wake up and launch a strict crackdown against the sugar mafia, middlemen, and hoarders who have stockpiled massive quantities of sugar,” Ibrahim warned, cautioning that prices could soar to Rs200 per kg if decisive action is not taken immediately.
He urged authorities to collect data on production costs and sales from sugar mills to curb unjustified price hikes. He also pointed to a recent raid in Bhens Colony, where 11,000 sugar bags (50 kg each) were recovered from a warehouse, calling for similar inspections at millers’ godowns.
According to the Sensitive Price Index (SPI), sugar prices have surged to Rs150-165 per kg from Rs145-160 per kg within a month. The rate was Rs130-150 in early January.
Meanwhile, the government and millers have announced plans to sell sugar at Rs130 per kg through designated stalls across the country during Ramazan. A spokesperson from the Pakistan Sugar Mills Association (PSMA) (Punjab Zone) assured that discounted sugar would be available at municipal-level sale points.
However, the PSMA emphasized that sugar prices are largely dictated by market forces of supply and demand, while accusing speculators of spreading false information to manipulate prices for profit. “These speculators are the real beneficiaries of price volatility. The government must take strict action to root them out,” the association demanded.
With Ramazan approaching, consumers remain anxious about whether the government’s intervention will be effective in stabilizing sugar prices or if the crisis will deepen further.
