Sugar prices in Pakistan are steadily increasing and could reach Rs200 per kilogram in the coming weeks due to a supply shortage of nearly one million tonnes, according to reports.
At present, retail prices range between Rs165 and Rs170 per kg, a sharp rise from Rs140-150 per kg just a month ago. Meanwhile, wholesale prices in Lahore have surged to Rs160 per kg, compared to Rs145 per kg previously.
The significant price hike is largely attributed to excessive sugar exports over the past year, which amounted to 700,000 tonnes. Current stock levels stand at 5.8 million tonnes, which may not be sufficient to meet local demand. This concern is amplified by a decline in sugarcane recovery rates to 12% and a 20% reduction in cultivation area this season.
These factors have led to lower production estimates, fueling market speculation that sugar prices may soon reach Rs200 per kg. While wholesale dealers are experiencing stock shortages, sugar mills continue to hold supplies.
According to official projections, Pakistan’s sugar production for the 2024-25 season is expected to reach 6.8 million tonnes, reflecting a 3% increase from the previous year. However, with annual consumption estimated at 6.6 million tonnes, the surplus remains minimal.
Industry analysts warn that even minor disruptions such as hoarding or delays in the supply chain could trigger panic buying and drive prices even higher.
