The government’s assertions regarding a reduction in sugar prices have been rendered ineffective, as prices have surged past Rs200 per kilogram across major cities, including Karachi, Peshawar, Quetta, and Multan.

In numerous areas, shopkeepers are charging between Rs180 to Rs200 per kilogram, exacerbated by the halt in sugar mill deliveries.

In Naushahro Feroze, the situation has escalated, with some shopkeepers selling sugar at Rs200 per kilogram.

Peshawar is seeing prices nearing Rs205, while Quetta reports rates of Rs190 per kilogram. Karachi’s wholesale market reflects a price of Rs180 per kilogram, with retail prices fluctuating between Rs185 to Rs200.

To alleviate the burden on consumers, the government has negotiated an ex-mill price of Rs165 per kilogram with sugar mill owners.

This is an increase from Rs159 in March and Rs140 last June. However, despite this price being set, consumers are not experiencing any real relief.

The Federal Ministry of Food Security has raised alarms about the crisis, indicating that 500,000 metric tons of sugar will be imported to stabilise prices.

The government also authorised the export of 750,000 tonnes of sugar from June to October 2024, which subsequently led to a domestic shortage.

Sugar mill owners had assured that exports wouldn’t impact local prices, yet these commitments have not materialised.

The finance minister commented sarcastically that “sugar has stolen the show, yet the government seems indifferent.”

Meanwhile, hoarders are capitalising on the disrupted deliveries, stockpiling sugar in warehouses.

Economists caution that without prompt and decisive action, sugar prices could escalate to Rs220 per kilogram, ushering in a new wave of inflation for consumers.