by In a bid to curb rising retail prices and prevent a potential sugar crisis ahead of key consumption months, the Government of Pakistan has decided to import raw sugar to help stabilise domestic prices. This move comes amid lower-than-expected local production, volatile global sugar rates, and concerns over hoarding and speculative price hikes in the local market.
📉 Why the Price Surge?
Over the past few weeks, sugar prices have soared in major cities, with rates crossing Rs. 160 per kg in some retail markets. The causes behind this spike include:
- Shortfall in domestic sugarcane production
- Delays in crushing season and supply chain bottlenecks
- Hoarding by middlemen and traders
- Global market pressure due to poor harvests in Brazil and India
With Eid-ul-Milad and Muharram approaching — seasons that often see higher sugar consumption — the government is under pressure to act fast to maintain price stability.
Govt to import raw sugar to stabilise prices.
🏭 Govt’s Strategy: Import Raw Sugar, Not Refined
Instead of importing white/refined sugar, the government has opted for raw sugar, which will be processed by local sugar mills. This approach offers several advantages:
- Supports domestic industry by utilizing idle capacity
- Reduces import costs as raw sugar is cheaper than refined
- Maintains employment levels in the sugar refining sector
- Adds time buffer to regulate sugar release into the market gradually
According to official sources, the Ministry of Industries & Production, in coordination with provincial governments, will oversee quotas and mill allocations.
🚢 How Much Sugar Will Be Imported?
While exact figures are yet to be finalized, government insiders suggest an initial tranche of 200,000 to 300,000 metric tons of raw sugar may be allowed, depending on local demand assessments and inventory levels.
The Trading Corporation of Pakistan (TCP) may also be tasked with:
- Floating international tenders
- Negotiating prices on government-to-government (G2G) basis
- Ensuring quality and timely arrivals
📊 Expected Market Impact
Analysts believe that the announcement and actual arrival of imported raw sugar could help in:
✅ Breaking the speculative cycle of hoarding
✅ Easing price pressure at wholesale and retail levels
✅ Rebuilding buffer stocks for strategic reserve
✅ Signaling policy clarity to the market
However, the impact will depend on timely imports, efficient refining, and strict price monitoring at provincial levels.
🧾 Industry Reaction
While some sugar mill owners have welcomed the move as an opportunity to utilize underused capacity, others caution that raw sugar imports should be temporary and tied strictly to market needs.
Consumer groups and economic experts, on the other hand, have urged transparency in the import process and strict market inspections to ensure that benefits are passed on to the end consumers.
