Karachi, Pakistan – Pakistani consumers are once again reeling from a dramatic surge in sugar prices, climbing from Rs130 to a staggering Rs180 per kilogram since January. This sharp increase has ignited public outrage, especially considering the ongoing crushing season and the sugar industry’s prior pledge to maintain retail prices within the Rs140-145 range. The industry made this commitment in exchange for government approval to export surplus stocks last year, a promise that has been blatantly disregarded.
The sudden price hike has exposed the entrenched power of the sugar cartel, a group notorious for exploiting its political influence to maximize profits at the expense of ordinary citizens. Despite repeated investigations highlighting rampant tax evasion and the existence of a vast grey market, little has been done to curb their exploitative practices. A previous Federal Investigation Agency (FIA) inquiry, initiated during Imran Khan’s tenure, recommended crucial reforms to regulate the sugar supply chain and prevent future price crises. However, these recommendations have been consistently ignored, allowing the cartel to operate with impunity.
Instead of enforcing the industry’s commitments or addressing the deep-rooted structural issues that fuel price volatility, the government has resorted to short-term, costly measures. The decision to import raw sugar and subsidize it at Ramazan bazaars offers only temporary relief and does not address the fundamental problem. Critics argue that these measures merely perpetuate the cycle of market manipulation and government intervention, without providing a sustainable solution.
Experts are calling for a complete deregulation of the sugar trade, urging the government to relinquish its control over cane crop and sugar prices, as well as import and export regulations. They advocate for a free market system where retail prices and profit margins are determined by supply and demand. This approach, they believe, would foster transparency and competition, ultimately benefiting consumers.
The current crisis underscores the urgent need for comprehensive policy reforms and effective market regulation. Without dismantling the sugar cartel’s grip on the market and implementing long-term solutions, Pakistani consumers will continue to bear the brunt of artificially inflated prices and market instability. The government’s failure to act decisively will only embolden the cartel, ensuring the continuation of this exploitative cycle.
