KARACHI/LAHORE/ISLAMABAD – Despite a recent agreement between the federal government and sugar millers to cap ex-mill sugar prices at Rs165 per kilogram, sugar continues to be sold at significantly higher rates across the country, raising questions over enforcement and market transparency.
According to market sources, the deal was expected to lower wholesale prices to around Rs168 per kg and retail prices to between Rs172 and Rs175 per kg. However, in reality, wholesale sugar is not available even at Rs185, while retail rates in major cities such as Karachi, Lahore, and Islamabad range from Rs180 to Rs210 per kg.
Traders and retailers allege that many sugar mills resumed supply only to charge higher rates—up to Rs175 per kg instead of the agreed Rs165—citing rising production costs. In Karachi, residents report purchasing sugar at Rs200 per kg, while in parts of Lahore, rates have gone as high as Rs210. Shopkeepers in several areas are setting their own prices, unregulated by any price-checking authority.
The situation is equally grim in Islamabad and Rawalpindi, where the crisis has deepened due to halted deliveries from mills. The Wholesale Grocers Association has confirmed that many mills stopped deliveries late last week, contributing to further supply shortages and price hikes.
In response, local administrations have attempted to take action. Lahore’s deputy commissioner has instructed price magistrates to monitor and take action against retailers charging above the official cap of Rs180 per kg. However, enforcement on the ground remains weak, and few penalties have been reported.
A high-level meeting chaired by the Minister for National Food Security, Rana Tanveer Hussain, included officials from the Ministry of Industries and representatives of the Pakistan Sugar Mills Association (PSMA). The meeting reaffirmed the agreed ex-mill price of Rs165 per kg and pledged that compliance would be ensured within a few days. The minister vowed zero tolerance for hoarding and profiteering, stressing the need for an uninterrupted supply to stabilise prices.
Despite these assurances, analysts and market observers remain skeptical. They argue that without effective monitoring mechanisms and strict punitive actions against non-compliant millers and retailers, such agreements are unlikely to deliver real relief to consumers. They also point out that past interventions have often failed due to weak oversight and lack of coordination between federal and provincial authorities.
Consumers, meanwhile, are left to cope with the consequences. With sugar prices increasing by nearly 50% since the beginning of the year—rising from around Rs140 per kg to over Rs200—the burden on household budgets continues to grow. The crisis comes at a particularly sensitive time as demand typically rises in the lead-up to religious and social events.
If supply disruptions persist and enforcement remains inadequate, the government may face mounting pressure to take more decisive action, including exploring options such as market audits, import alternatives, or even targeted subsidies for low-income groups. For now, however, the promised relief remains out of reach for most citizens.
