Pakistan looking to import sugar amidst increasing domestic prices

Published 2021년 4월 9일

Sugar prices in Pakistan have been increasing in the past months due to a shortage in supply. According to the government, sugar mills are hoarding the sugar and creating an artificial shortage in the market. The situation became so grave that the government had decided to lift a nearly two-year ban on the import of sugar from eastern neighbor India. However, the PM quickly took a step back and declared that they would not import sugar from India under current circumstances. The country is currently looking to source sugar so that the prices can be stabilized during the upcoming festivities of Ramadan when the demand surges for sugar surges.

Since the start of 2021, sugar prices in Lahore, Quetta, Multan, Faisalabad and Karachi region in Pakistan have been increasing. The wholesale price in Karachi was at USD 1.13 while the retail price was set at USD 1.23 per kg or even USD 1.36 per kg in some cases. Residents of all the main cities argued that the sugar prices should be controlled to ensure affordable prices of the staple condiment. The government continued to blame the sugar mills and accused them of hoarding the sugar and creating an artificial shortage, leading to a hike in sugar rates.

Sugar Price in Pakistan (in USD per kilogram)

Pakistani sugar imports between July 2020 and February 2021 jumped by 98% to 278,733 tonnes in comparison to the 4,358 tonnes in the same period in 2019-20 which can be measure “to stabilize the market prices by increasing the quantity of sugar in the domestic market. The situation in Pakistan had become so grave that Pakistan’s government had decided to lift a nearly two-year ban on the import of sugar from eastern neighbor India. The country had aimed to import 500K tonnes from India but the Prime Minister of Pakistan quickly turned the decision around by stating that they will look for alternative sources of imports and were not interested in importing sugar from India under current circumstances. The country can also source sugar from the second-largest sugar-producing country, Brazil, but it would cost the country a lot more due to the distance between the two countries and the shipping time is expected to be at least 4 days.