Government Admits Sugar Prices Have Surged to Rs190 per Kilogram

ISLAMABAD: The government of Pakistan confirmed on July 5, 2025, that sugar prices have escalated to nearly Rs190 per kilogram in most urban areas, prompting a decision to import 500,000 metric tons of sugar to address the shortfall. This announcement was made by the Ministry of Planning, Development, and Special Initiatives following a meeting of the National Price Monitoring Committee (NPMC), chaired by Federal Minister Ahsan Iqbal.

The Ministry's statement highlighted that recent market conditions have resulted in a spike in sugar prices, with some areas reporting costs as high as Rs196 per kilogram, according to a bulletin released by the Pakistan Bureau of Statistics (PBS). This price increase represents a substantial rise from previous rates of Rs140 per kilogram, marking a 40% increase due to the government's decision to export 765,000 metric tons of sugar, based on earlier claims of surplus production.

According to the Ministry, sugar production has declined this year, with output falling to 5.8 million tons from 6.8 million tons. To stabilize the market, the decision to import sugar was made, aiming to alleviate the burden on consumers facing rising food costs.

During the NPMC meeting, Minister Ahsan Iqbal also reviewed the inflationary trends across various essential commodities. The inflation rate for the fiscal year 2024-25 was reported at 4.5%, a significant decrease from the previous year's 23.4%, which the government attributes to effective policy measures and improved supply management. In urban areas, food inflation specifically registered at 4.2%, down from 6.2% last year.

Despite these promising statistics, the meeting acknowledged ongoing challenges, including localized price fluctuations attributed to supply chain disruptions due to highway closures in Sindh. Minister Iqbal emphasized the necessity of effective monitoring through the Price Scorecard system, noting the varied engagement levels among provincial administrations.

The competition between wholesale and retail pricing, as discussed in previous meetings, remains a contentious issue. The Competition Commission of Pakistan (CCP) continues to explore fair profit margins for essential goods, although concerns regarding the legality of collective price-setting mechanisms have been raised.

The Planning Minister called for enhanced inter-provincial coordination to strengthen price monitoring and management. A delegation from the PBS recently visited all provinces to consult on the effective use of the Decision Support System for Inflation (DSSI) to provide accurate price monitoring data.

As the government prepares for the impending sugar imports, the implications of these price adjustments and import strategies will be closely watched by both consumers and market analysts. The efficacy of these measures in stabilizing prices will be critical in maintaining public trust and economic stability in the coming months.