Deputy Prime Minister Ishaq Dar reaffirmed the government’s commitment to regulating sugar prices and ensuring stable supply, but market rates continue to defy official caps, with sugar retailing as high as Rs180 per kilogram across various cities, according to state-owned Radio Pakistan.
Despite multiple government interventions and Prime Minister’s directives to cap sugar prices at Rs130 per kg, retailers have not adhered to the set limits. Dar had previously warned that sugar should not be sold above Rs164 per kg, yet national prices continue to fluctuate between Rs164-180 per kg.
Chairing a meeting in Islamabad on Friday, Dar reviewed compliance with prior agreements and expressed satisfaction over what he described as a “downward trend” in sugar prices. He directed the Pakistan Sugar Mills Association (PSMA) to fully comply with the agreed retail price ceiling of Rs164 per kg nationwide.
Pakistan’s sugar consumption is expected to rise to 6.7 million tonnes, fueled by population growth and demand from the food processing sector. Meanwhile, domestic production exceeded 6.84 million tonnes in the last season and is forecasted to increase further in 2024-25.
The Competition Commission of Pakistan (CCP) is actively monitoring the sugar sector amid allegations of price manipulation. The commission warned of strict enforcement actions against anti-competitive practices.
CCP’s inquiry, launched in 2020, found evidence of price-fixing and supply control among sugar mills, allegedly facilitated by the PSMA. In August 2021, the CCP imposed a record Rs44 billion fine on sugar mills and the PSMA for cartelisation.
With prices continuing to defy official rates, regulatory authorities and the government face mounting pressure to enforce compliance and stabilise the market.