The government and sugar mill owners have reached an agreement to control soaring sugar prices, resulting in the ex-mill price of sugar being fixed at Rs165 per kilogram, according to a statement issued by the Ministry of National Food Security.

The ministry confirmed that the decision was made following successful negotiations with sugar mills, aimed at providing relief to consumers amid complaints of artificial price hikes.

Provincial governments have been directed to ensure the availability of sugar at the revised price, the ministry added.

Currently, sugar is being sold at up to Rs200 per kilogram in various parts of the country.

Officials attribute the inflated prices to hoarding and market manipulation by sugar cartels, despite the federal government having temporarily removed import taxes on sugar to ease supply pressures.

The Wholesale Grocers Association, however, criticised the approach of lifting import duties, and instead urged the government to launch a crackdown on hoarders and conduct raids on warehouses, arguing that decisive action against cartels would lead to a significant drop in prices.